Blackwater Midstream Corp. (BWMS.OB) Subsidiary Enters Asset Purchase Agreement for Georgia Facility

By IBTimes Staff Reporter | April 08 2010 3:36 AM

Blackwater Midstream Corp.’s wholly owned subsidiary, Blackwater Georgia, L.L.C., announced recently that it has entered into an Asset Purchase Agreement to acquire a liquid terminal facility in Brunswick, Georgia. The closing of the acquisition, valued at $1.8 million, will occur by May 31, 2010.

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Located on six acres of leased property, the Brunswick site consists of 160,000 barrels of storage capacity and is accessible for ocean vessels, inland barges, railcars, and tanktrucks. There is also available on-site space to build an additional 150,000 barrels of capacity.

Mike Suder, Blackwater Midstream Corp.’s Chief Executive Officer stated, “The Brunswick facility acquisition is a key addition to our business. It further illustrates the commitment that Blackwater Midstream has to our shareholders to continually seek opportunities to expand within our fence line and to acquire strategic terminal assets. The newly constructed 150,000 barrels of capacity and ship dock at our Westwego, Louisiana facility, and the acquisition of this terminal in Brunswick is right in line with that business objective of expanding our portfolio.”

Frank Marrocco, Chief Commercial Officer of Blackwater Midstream Corp. added, “We have received a strong response from various companies, including existing customers at our Westwego terminal that are interested in storage capacity in the Brunswick market. Being able to offer our product storage and distribution services to existing and potential customers in two markets will provide Blackwater Midstream some very exciting opportunities moving forward.”