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Northern Tier Energy announces $775 million deal

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November 12, 2013 02:49 PM EST | AP

RIDGEFIELD, Conn. (AP) — Northern Tier Energy LP said that its private equity sponsors, ACON Investments LLC and TPG, have entered into a definitive agreement to sell all of their interests in the energy company to Western Refining Inc. for $775 million.

The deal would also include the distribution on the common units acquired with respect to the quarter ended Sept. 30.

As a result of the transaction, Western Refining now owns 100 percent of the general partner and 35.6 million common units, or 38.7 percent of Northern Tier Energy. The balance of the limited partner units will remain publicly traded.

Northern Tier, which completed its initial public offering in July 2012, operates a refinery in St. Paul Park, Minn., and 163 convenience stores. It also supports another 74 franchised convenience stores, primarily in Minnesota and Wisconsin.

Western Refining, based in El Paso, Texas, said the transaction will add immediately to its earnings and cash flow. The assets acquired, located in the Upper Midwest region, diversify and expand its refining platform and scale, Western Refining said.

The transaction was signed and closed Tuesday.

In afternoon trading, Western Refining shares jumped 8.6 percent, or $2.84, to $35.94 while shares of Northern Tier Energy added nearly 4 percent, or 91 cents, to $24.17.