Delek US Holdings, Inc.’s $464 Million Acquisition of Alon USA Partners, LP

Baker Botts represented Delek US in the transaction.

Delek US Holdings, Inc. (NYSE: DK) (“Delek US”) and Alon USA Partners, LP (NYSE: ALDW) (“Alon Partners”) today announced the execution of a definitive merger agreement under which Delek US will acquire all of the outstanding Alon Partners common units representing limited partner interests which Delek US or its affiliates do not already own, in an all-stock for common units merger transaction.

Delek US and its affiliates currently own approximately 51.0 million common units of Alon Partners, or approximately 81.6 percent of the outstanding units. Under terms of the merger agreement, the owners of the outstanding common units in Alon Partners that Delek US and its affiliates do not currently own will receive a fixed exchange ratio of 0.49 Delek US shares for each common unit of Alon Partners. This implies a 5.0 percent premium to the 30 trading day volume weighted average ratio through and including November 7, 2017, of 0.4666 and a 2.9 percent premium to the ratio on November 7, 2017, which was the day before the parties announced the transaction.

The transaction is expected to close in the first quarter of 2018, subject to customary closing conditions.

Delek US Holdings, Inc. operates as a holding company. The Company, led by Ezra Yemin, focuses on the petroleum refining, logistics, and convenience store retailing.

Baker Botts represented Delek US with A.J. Ericksen (Picture), Joshua Davidson, Leslie Daniel, Eileen Boyce, Bill Pritchett, Gita Pathak (M&A), Michael Bresson, Jared Meier (Tax), Rob Fowler, Chris Pratt (Employment).

Involved fees earner: A.J. Ericksen – Baker Botts; Joshua Davidson – Baker Botts; Leslie Daniel – Baker Botts; Eileen Boyce – Baker Botts; Bill Pritchett – Baker Botts; Michael Bresson – Baker Botts; Jared Meier – Baker Botts; Rob Fowler – Baker Botts; Chris Pratt – Baker Botts;

Law Firms: Baker Botts;

Clients: Delek US;


Author: Ambrogio Visconti