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Embattled Hess sells 20 terminals to Buckeye for $850M

Oct 10, 2013 - The Deal Pipeline
Mergers and Acquisitions

Houston energy storage provider Buckeye Partners LP agreed to buy 20 liquid petroleum product terminals from Hess Corp. of New York for $850 million, the companies said after the markets closed Wednesday.

Analysts at Tudor, Pickering, Holt & Co.said the price works out to $22 per barrel of capacity, below the firm's estimate of $28 per barrel of capacity, or $1.1 billion.

Buckeye expects the acquisition multiple to be less than 8 times adjusted Ebitda after a full year of operation...