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Alon USA buying two U.S. refinery operators for $460 million
By Asaf Rothem
May 1, 2006, 10:09
Alon USA Energy (NYSE: ALJ) is buying the operations of two oil refinery operators in the U.S. for $460 million.
The transaction will double the refining capacity of Alon USA, which is owned by Dudi Wiessman, Shraga Biran and Africa Israel (TASE: AFIL). The transaction will also expand the Israeli-American company's asphalt production.
The company said it would buy Paramount Petroleum Corp. for $307 million cash, and assume $100 million in debt. The deal is expected to close late in the second quarter or early in the third quarter.
Alon also plans to buy the assets of Edgington Oil Co. for $52 million cash, a deal due to close this quarter.
Among Paramount's assets are a 54,000-barrels-per-day refinery in Paramount, California, and seven asphalt terminals. Edgington is a topping refinery with a listed capacity of about 40,000 barrels per day.
From January 1, Alon USA stock has risen by 36%.
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