Milbank, Tweed, Hadley & McCloy LLP advised Canada-based integrated energy company Husky Energy on its acquisition of Superior Refinery, a 50,000 barrel per day permitted capacity facility located in Superior, Wisconsin from Calumet Specialty Products Partners, L.P. for $435 million US in cash. The transaction includes an additional payment from Husky for net working capital, inventories, and reimbursement of certain capital spending.
The acquisition will increase Husky’s total downstream capacity to approximately 395,000 barrels per day (bbls/day). The transaction includes the acquisition of Superior Refinery’s associated logistics, including two asphalt terminals, 3.6 million barrels of crude and product storage and a fuels and asphalt marketing business.
The transaction is subject to regulatory approval and closing adjustments and is expected to close in the fourth quarter of 2017.
The Milbank team was led by Antitrust partner Fiona Schaeffer and Corporate partners John Franchini and Nicholas Smith along with associates Aaron Stine, Danny Tyrrell, Ben Kastner and Alex Wang; Project, Energy and Infrastructure Finance partner Matthew Hagopian and associate Kilian de Cintre; Executive Compensation and Employee Benefits partner Joel Krasnow and associate James Beebe; Environmental partner Matthew Ahrens; Transportation and Space partner Dara Panahy and associate Lafayette Greenfield; and special counsel Max Goodman and associate Michael Goon from the Tax group.
“The acquisition will provide numerous strategic and financial benefits for both Husky and Calumet, and allow the companies to more efficiently respond to changing market demands in North America,” said Ms. Schaeffer.
“We are pleased to have advised on this transaction that will further Husky’s strategic goals to maximize the value derived from its heavy oil production in Canada, and will also retain Superior Refinery’s approximately 180 employees,” added Mr. Franchini.
