DENVER (AFX) - TransMontaigne Inc. said Tuesday that its subsidiary, TransMontaigne Product Services Inc., has purchased liquefied petroleum gas assets from Rio Vista Energy Partners LP and Penn Octane Corp. for a combined $16.9 million.
The assets acquired from Rio Vista include its Brownsville, Texas, terminal, its liquefied petroleum gas sale agreement with PMI Trading Ltd. and its associated liquefied petroleum gas inventory.
Cash consideration paid to Rio Vista totaled about $7.1 million, after adjustments and payments.
In addition, TransMontaigne has agreed to use the services and retained assets of Rio Vista on a fee basis for the transportation of liquefied petroleum gas to be delivered into northeastern Mexico.
The assets acquired from Penn Octane include its pipeline lease with Seadrift Pipeline Corp., its liquefied petroleum gas supply agreement with Exxon Co. USA and all of its associated liquefied petroleum gas inventory.
Cash consideration paid to Penn Octane totaled about $9.8 million after adjustments, TransMontaigne said.
TransMontaigne shares closed up 2 cents at $11.29 on the New York Stock Exchange, while Rio Vista shares closed up 25 cents, or 5.6 percent, at $4.75 on the Nasdaq.
Copyright 2006 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.