Teppco buys marine assets for $50 mln
Oil pipeline and storage company Teppco Partners LP said its purchased marine assets, including 19 boats and 28 barges, from TransMontaigne Product Services Inc for $50 million in cash.
The acquisition of these vessels is immediately accretive to distributable cash flow per unit, and is supported by long-term contracts of up to five years with well-capitalized counterparties at attractive terms, Jerry Thompson, chief executive officer of Teppco's general partner, said in a statement.
The acquired vessels primarily deliver bunker fuels for cruise liners and cargo ships as well as fuel oil for electric generation plants.
Teppco shares were trading nearly flat at $28.82 in morning trade on the New York Stock Exchange. (Reporting by Hezron Selvi in Bangalore; Editing by Anil D'Silva)
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