Royal Vopak, a leading global provider of storage and handling solutions for liquid chemicals, gases, and oil products, has announced a binding agreement to sell its terminal in Savannah, USA to BWC Terminals, a US-based bulk liquids storage company.
This divestment aligns with Vopak’s strategic goals to enhance its financial performance, expand its presence in gas and industrial terminals, and advance into new energy infrastructure. The transaction, valued at $106 million in cash and debt-free enterprise value, is expected to generate net cash proceeds of approximately $80 million for Vopak.
Savannah Terminal Overview:
Vopak Terminal Savannah, with an operational capacity of 250,566 cubic meters, serves as a storage facility for various products, including vegetable oils, asphalt, and specialty chemicals. Over the years, the terminal has played a crucial role in supporting Vopak’s operations in North America.
Positive Outlook and Customer Satisfaction:
While acknowledging the departure of their colleagues at the Savannah terminal, Vopak remains confident that the transition to BWC Terminals will benefit both customers and employees. Maria Ciliberti, Division President Vopak Americas, expressed gratitude to Savannah colleagues and customers for their trust and contribution, emphasizing the commitment to ensure a seamless transfer to BWC Terminals. This customer-centric approach highlights Vopak’s dedication to maintaining high service levels and fostering positive relationships within the industry.
Strategic Financial Goals:
The divestment of the Savannah chemical terminal aligns with Vopak’s strategic objective to enhance its financial performance.
Michiel Gilsing, Chief Financial Officer of Vopak: “The divestment of the Savannah chemical terminal is in line with our strategic goals to improve the financial performance of the portfolio, grow Vopak’s footprint in gas and industrial terminals and accelerate towards new energies. We remain committed to actively manage our portfolio towards infrastructure investments that support the long-term cash flow profile and return ambitions of the company.”
Focus on Growth in Gas and Industrial Terminals:
In line with its strategy, Vopak aims to expand its presence in gas and industrial terminals. The company plans to invest €1 billion by 2030 to bolster its footprint in this sector. The growing demand for gas and industrial storage solutions presents an opportunity for Vopak to leverage its expertise and capitalize on market trends.
Commitment to New Energy Infrastructure:
Vopak recognizes the importance of transitioning to new energy sources and intends to invest another €1 billion by 2030 in infrastructure for new energies. This strategic move reflects Vopak’s dedication to shaping a better future by providing essential infrastructure solutions that support the global economy and people’s daily lives.
Closing and Outlook:
The completion of the divestment is subject to customary closing conditions and is expected to be finalized in the second quarter of 2023. Although the financial impact of this transaction on Vopak’s 2023 outlook is not considered significant, it represents a step forward in reshaping the company’s portfolio to drive sustainable growth and support emerging energy sectors.