Marathon Completes Minnesota Downstream Assets Transaction

Marathon Oil Corporation said late Wednesday that its wholly owned subsidiary Marathon Petroleum Company LP (MPC) has closed the transaction with  ACON Investments, LLC (ACON)  and TPG Capital (TPG) for the sale of most of Marathon’s Minnesota downstream assets.

ACON and TPG formed Northern Tier Energy LLC (Northern Tier Energy) to operate the assets as a stand-alone company.

Included in the transaction is the 74,000 barrel per day St. Paul Park refinery and associated terminals, 166 SuperAmerica convenience stores (including six stores in Wisconsin), SuperMom’s bakery and commissary, SuperAmerica Franchising LLC, interests in pipeline assets in Minnesota and associated inventories.

The total sales value is approximately $935 million including Northern Tier preferred stock with a stated value of $80 million.

Approximately $330 million of the total sales value is for the inventories associated with these operations.

The transaction also contains earnout and margin support components where Marathon could receive up to an additional $125 million over eight years or may be required to provide up to $60 million of margin support to the buyers, subject to certain conditions.

Any margin support paid will increase the total earnout amount that may be received by Marathon.