Stolt-Nielsen Agrees To Sell Terminals to Kinder Morgan
Stolt-Nielsen Transportation Group Ltd., a wholly-owned subsidiary of Stolt-Nielsen S.A., announced it has signed a definitive agreement with Kinder Morgan Energy Partners, L.P. for the sale of its Chicago, Ill., and Perth Amboy, N.J. bulk liquid terminal facilities for $70 million.Closing is subject to standard conditions and the receipt of local regulatory and third party approvals. Providing these are obtained, it is anticipated that the transaction will be completed by the end of SNSA's fiscal year on November 30, 2001.
Reginald Lee, Chief Executive Officer of SNTG said, "We are pleased to announce this agreement with Kinder Morgan. While the Chicago and Perth Amboy facilities have historically been profitable, we have not been able to develop them as an integral part of SNTG's distribution network and divestment fits our overall development strategy. We will continue to expand our terminal network, either through direct investment or with alliance partners, in ports where we can integrate terminals with our distribution system and improve the efficiency of parcel tanker operations. This divestiture of non-core assets will enable us to paydown debt and deleverage the balance sheet."