by Luke Jones
Posted 12/20/2013 10:59 am
Updated 8 months ago
Murphy USA Inc. of El Dorado announced recently that it has completed the $173 million sale of subsidiary Hankinson Renewable Energy LLC.
According to a news release, Hankinson owns and operates a 132 million-gallons-per-year ethanol plant in Hankinson, N.D. The buyer, Guardian Hankinson LLC, acquired Murphy's former subsidiary in an all-cash transaction through a membership purchase agreement.
The purchase price was $170 million plus $3 million for inventory and net working capital.
"This is a major step in executing our strategy to exit non-core businesses while realizing significant value for our shareholders," Murphy USA CEO Andrew Clyde said in the release. "The proceeds provide additional financial flexibility to continue our growth plans while reducing our long-term debt."
Murphy USA owns around 1,200 fuel kiosks around the nation. It spun off of its parent company, Murphy Oil Corp., in September.