Keyera Corp. (“Keyera”) completed the acquisition of all of the joint venture assets of Alberta EnviroFuels (“AEF”), as well as all of the common shares of Alberta EnviroFuels Inc., from Chevron Standard Limited (“Chevron”) and Neste Canada Inc. (“Neste”).
As part of the transaction, Keyera acquired a 13,600 barrel per day capacity iso-octane manufacturing facility; pipelines associated with the facility; and iso-octane sales agreements with major refiners. Keyera also entered into multi-year agreements with Chevron and its affiliates relating to sales, transportation, downstream processing, and shipping of iso-octane. The purchase price of US$193.7 million, plus working capital of US$43.2 million primarily related to butane and iso-octane inventories, was funded using existing cash flow and Keyera's bank credit facility.
AEF is the largest iso-octane manufacturing facility in the world. Iso-octane is a low-vapour pressure, high-octane gasoline-blending component that serves to reduce volatility, improve combustion efficiency and create cleaner burning gasoline. The facility uses butane as the primary feedstock and is connected by pipeline to Keyera's NGL infrastructure in the Edmonton and Fort Saskatchewan area. Iso-octane manufactured at AEF is sold to refineries in Alberta or shipped to the west coast for sale in British Columbia and California.
Keyera was represented by Suzanne Hathaway, Vice President, General Counsel, Jan Bagh, Senior Counsel, and Shafyn Manji, Corporate Counsel, and by Craig Story, Harold Andersen and Ben Hudy (corporate); Susan Hutton and Paul Beaudry (competition) and David Weekes (tax) of Stikeman Elliott LLP and by Austin Keyes, Guy Lander and Ann Batchelor of Carter Ledyard & Milburn LLP.
Chevron was represented by Michael Green, Senior Counsel, and by Brian Fulton, Justin Young and Jordan Toye (corporate); Leonard Glass (tax) and Valerie Mann (competition) of Lawson Lundell LLP. Neste was represented by Tom Hirst, QC, and KayLynn Litton (corporate); John Carleton (competition) and Darren Hueppelsheuser (tax) of Norton Rose Canada LLP.