US oil refiner Sunoco, Inc. (NYSE:SUN) has reached a definitive agreement to sell its phenol manufacturing facility in Haverhill, Ohio, to Haverhill Chemicals LLC, an affiliate of Goradia Capital LLC.
Sunoco will sell the facility and the estimated value of the product inventory attributable to the facility for a combined purchase price of approximately $106.5 million. The purchase price is subject to adjustment based upon the product inventory on hand at the closing. Sunoco incurred a pretax non-cash charge of $169 million related to the write-down of Haverhill assets in the second quarter of 2011.
The transaction is subject to regulatory approval and customary closing conditions and is expected to be completed by the end of 2011.
"The sale of the Haverhill manufacturing facility continues our efforts to unlock value for shareholders by divesting certain non-core assets and completes our exit from the chemicals business," said Lynn L. Elsenhans, Sunoco's chairman and chief executive officer. "We appreciate the years of service that the employees at Haverhill have given Sunoco."
Alberto Spera, the new chief executive officer of Haverhill Chemical, said, “I am truly excited by this acquisition. We are impressed by the Haverhill team, and I look forward to working together to create a successful company.”
Sunoco is a leading transportation fuel provider, with operations located primarily in the East Coast and Midwest regions of the United States. The Company sells transportation fuels through more than 4,900 branded retail locations in 24 states.
Sunoco to sell Haverhill Ohio phenol plant for $106.5MM