Sunoco, Inc. : Sunoco Enters into Exclusive Discussions with The Carlyle Group Regarding Philadelphia Refinery Joint Venture
04/23/2012| 08:35am US/Eastern
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Sunoco, Inc. (NYSE: SUN) announced today that it has entered into
exclusive discussions with The Carlyle Group, a global alternative asset
manager, regarding a potential joint venture involving Sunoco's 330,000
barrel-per-day refinery in Philadelphia. If a transaction were to be
consummated, Sunoco would contribute its Philadelphia refinery assets in
exchange for a non-operating minority interest in the joint venture. In
addition, Sunoco would have no on-going capital obligations with respect
to the refinery. Carlyle would contribute cash to the joint venture,
hold the majority interest and oversee day-to-day operations of the
joint venture and the facility. No other financial terms of the
potential transaction were disclosed and there can be no assurances that
the two companies will come to agreement.
Speaking on the potential joint venture and what it could mean to
operations at the Philadelphia refinery, Sunoco's president and chief
executive officer Brian P. MacDonald said, "The Carlyle Group has
financial depth, broad energy sector experience, and a history of
building value. We believe having a strong partner like Carlyle with a
track record of leading successful business turnarounds is necessary to
preserve the facility's future. Also, a concerted effort by all
stakeholders is necessary to ensure the successful completion of this
joint venture. We have been encouraged by the offers of support by
federal, state, local and labor officials."
Rodney S. Cohen, Managing Director, The Carlyle Group, said, "We are
working actively with Sunoco and other stakeholders to explore ways to
keep this vital facility operating. The facility has been operating at a
significant loss for some time, and we are exploring every avenue to
create a viable plan. It is a heavy lift and we are not sure a solution
is possible, but we are doing the work."
Leo W. Gerard, International President, United Steel Workers, said, "The
USW is more than willing to work with all levels of government and any
willing party who has the common goal with us to keep these East Coast
refining facilities in operation. We continue to believe their ongoing
operation is crucial not only to the thousands of our members employed
there but to the surrounding communities and to effectively deal with
the nation's fuel and energy issues."
In light of these on-going discussions with Carlyle, Sunoco intends to
extend its previously announced timeline and operate the Philadelphia
refinery through July 2012. If a suitable transaction with Carlyle
cannot be completed, the company would proceed with idling the main
processing units at the refinery in August 2012.
About Sunoco
Sunoco is a leading logistics and retail company. The company owns the
General Partner interest of Sunoco Logistics Partners L.P. (NYSE: SXL),
which consists of a two percent interest and incentive distribution
rights, and owns a 32 percent interest in the Partnership's limited
partner units. Sunoco Logistics is an owner and operator of
complementary pipeline, terminal and crude oil acquisition and marketing
assets. Sunoco also has a network of approximately 4,900 retail
locations in 23 states.
About The Carlyle Group
The Carlyle Group is a global alternative asset manager with $147
billion of assets under management in 89 active funds and 52 fund of
fund vehicles as of December 31, 2011. Carlyle invests across four
segments - Corporate Private Equity, Real Assets, Global Market
Strategies and Fund of Funds Solutions - in Africa, Asia, Australia,
Europe, the Middle East, North America and South America. Carlyle has
developed expertise in various industries, including aerospace, defense
& government services, consumer & retail, energy, financial services,
healthcare, industrial, technology & business services,
telecommunications & media and transportation. The Carlyle Group employs
approximately 1,300 people in 33 offices across six continents.
About the United Steel Workers
The USW represents about 850,000 working men and women in the United
States, Canada and the Caribbean in a wide variety of industries,
ranging from glass making to mining, paper, steel, tire and rubber and
other manufacturing environments to the public sector, service and
health care industries.
Sunoco, Inc.
Thomas Golembeski (media) 215-977-6298
or
Clare
McGrory (investors) 215-977-6764
or
The Carlyle Group
Christopher
Ullman, 202-729-5450
© Business Wire 2012
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