ARB Midstream LLC, a Denver, Colorado-based midstream energy company, is increasing its market reach into Canada with its acquisition of Sunwest Canada Ltd., a crude oil marketing and trading company headquartered in Calgary, Alberta. Sunwest will operate under the new name of ARB Midstream Logistics Canada ULC.
Sunwest, a privately held crude oil marketing and trading firm established in 2003, currently markets over 20,000 barrels per day of crude oil through Canadian and US pipeline systems. Existing Sunwest management will be retained by ARB Midstream and will continue to oversee the Canadian operations of the company.
The acquisition was financed in part through debt drawn on a new US$52.5 million credit facility with Macquarie Bank Ltd. and in part by an additional equity commitment from current ARB Midstream’s private equity sponsor, BV Natural Resources LLC. This new investment by BV Natural Resources increases their total contributions to date to over US$32.5 million and increases their total commitment to ARB Midstream to US$45 million.