Private investment company Ardian agreed to acquire a 35 percent stake in LBC Tank Terminals, buying out previous shareholders State Super and Sunsuper, the companies announced late last month.
This will be Paris-based Ardians third investment in a base oil industry player, next to oil storage company Gosel and Spains leading transport and oil products company CLH. Ardian said it chose to add LBC to its base oil portfolio due to its value creation potential and strategic locations. LBC represents an attractive risk-adjusted return profile due to the unique integrated nature of its business model and its attractive locations, said an Ardian spokesperson in an interview.
Headquartered in Belgium, LBC is a global, independent bulk liquid storage facility operator focused on base oil and chemical products. The companys largest operations are located in the U.S. Gulf Coast region in Houston and Baton Rouge, Louisiana, though LBC is also known for its operations in Rotterdam, Antwerp and Shanghai. LBCs clients already include the worlds leading petrochemical producers, said the spokesperson, and, in many cases, LBCs business is physically integrated into the customer production chain. Ardian believes this model lends LBC high value-creation potential.
Adrian intends to be an active investor, along with LBCs two remaining shareholders, APC and PGGM, which each own 32.5 percent of shares. Though the spokesperson stated Ardian fully supports LBCs current management team, she did note Ardian will support the company with further investment capital as well as drawing upon [its] industry expertise and relationships. The investment company intends to help LBC reach its expansion potential across Europe and the U.S.