Martin Resource Management Corp., owner of the general partner of Martin Midstream Partners LP (Nasdaq: MMLP) reports that certain affiliated investment funds managed by Alinda Capital Partners will acquire a 49% voting interest (50% economic interest) in MMGP Holdings LLC, a newly formed sole member of Martin Midstream GP LLC, the general partner of MMLP. Alinda is one of the world's largest infrastructure investment firms, with approximately $7.8 billion in equity commitments. The transaction is expected to close in the third quarter of 2013 and is subject to customary closing conditions.
Upon closing of the transaction and for a period of one year, Alinda will have the right to appoint two members to the board of directors of MMGP. After the initial one-year period, Alinda will have the right to appoint one additional member, totaling three appointees to the MMGP board. At closing and all times thereafter, the MMGP board will consist of seven members, at least three of which are required to be independent in accordance with SEC and NASDAQ requirements. MRMC will retain the right to appoint five members to the MMGP board for the initial one-year period and four members beyond the initial one-year period. There will be no change of control as a result of this transaction.
Upon closing of the transaction, MMGP will execute an amended and restated limited liability company agreement containing revised corporate governance procedures and the new MMGP board appointment process. Other than the MMGP limited liability company agreement, there will be no change to MMLP's governing documents as a result of this transaction. MMGP will continue to own the incentive distribution rights and its 2% general partnership interest in MMLP.
Martin Midstream Partners is a publicly traded limited partnership with a diverse set of operations focused primarily in the US Gulf Coast region. Its primary business segments include terminaling and storage services for petroleum products and byproducts, including the refining, blending, packaging and marketing of finished products; natural gas services, including liquids distribution services and natural gas storage; sulfur and sulfur-based products processing, manufacturing, marketing and distribution; and marine transportation services for petroleum products and byproducts.
Martin Resource Management Corp., through its various subsidiaries, is an independent provider of marketing and distribution of fuel oil, asphalt, sulfuric acid, diesel fuel and high-quality naphthenic lubricants. Martin markets over 250 million gallons of diesel fuel and lubricants per year along the Gulf Coast and approximately 1.5 million barrels of naphthenic lubricants and base oils per year throughout the US.