BRENTWOOD, Tenn., Oct 11, 2011 (BUSINESS WIRE) --
Delek US Holdings, Inc. (NYSE: DK), a diversified energy company with
assets in the petroleum refining, marketing and retail industries, today
announced that it has acquired the remaining 11.7 percent minority
equity interest in Lion Oil Company ("Lion Oil") held by a consortium of
Delek US is acquiring the minority equity interest from more than 20
investors, most of whom have been shareholders in Lion Oil since 1985.
Upon closing of the transaction, Delek US increased its total equity
ownership in Lion Oil from 88.3 percent to 100 percent for approximately
$13 million funded through existing cash on hand. Delek US acquired the
minority equity interest for a total consideration below the carrying
value attributed to the non-controlling interest in Lion Oil as of June
Uzi Yemin, President and Chief Executive Officer of Delek US Holdings,
remarked: "By assuming sole ownership of Lion Oil, we have increased
flexibility with which to pursue a wider range of strategic initiatives
capable of unlocking value for our shareholders, specifically as it
relates to the growth and development of our marketing and logistics
"Lion's three product distribution terminals, two crude pipelines and
several hundred mile gathering system are now wholly-owned by Delek US.
These assets join the three wholly-owned product terminals and pipelines
held by our other subsidiaries to comprise a network of logistics assets
that span from West Texas into the Mid-Continent. Over time, we intend
to further grow this area of our business as we seek to expand our
inland presence in the downstream energy markets," concluded Yemin.
About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy business
focused on petroleum refining, the wholesale distribution of refined
products and convenience store retailing. The refining segment consists
of refineries operated in Tyler, Texas and El Dorado, Arkansas with a
combined nameplate production capacity of 140,000 barrels per day. The
marketing and supply segment markets refined products through a series
of owned and third-party product terminals and pipelines. The retail
segment supplies fuels and merchandise through a network of
approximately 390 company-operated convenience store locations operated
under the MAPCO Express(R), MAPCO Mart(R), East Coast(R), Fast Food and Fuel(TM),
Favorite Markets(R), Delta Express(R) and Discount Food Mart(TM) brand names.
Safe Harbor Provisions Regarding Forward-Looking Statements
This press release contains forward-looking statements that are based
upon current expectations and involve a number of risks and
uncertainties. Statements concerning our current estimates, expectations
and projections about our future results, performance, prospects and
opportunities and other statements, concerns, or matters that are not
historical facts are "forward-looking statements," as that term is
defined under the federal securities laws.
Investors are cautioned that the following important factors, among
others, may affect these forward-looking statements. These factors
include but are not limited to: management's ability to execute its
strategy through acquisitions and transactional risks in acquisitions;
risks and uncertainties with the respect to the quantities and costs of
crude oil, the costs to acquire feedstocks and the price of the refined
petroleum products we ultimately sell; our competitive position and the
effects of competition; the projected growth of the industry in which we
operate; changes in the scope, costs, and/or timing of capital projects;
losses from derivative instruments; general economic and business
conditions, particularly levels of spending relating to travel and
tourism or conditions affecting the southeastern United States;
potential conflicts of interest between our majority stockholder and
other stockholders; and other risks contained in our filings with the
United States Securities and Exchange Commission.
Forward-looking statements should not be read as a guarantee of future
performance or results and will not be accurate indications of the times
at, or by which such performance or results will be achieved.
Forward-looking information is based on information available at the
time and/or management's good faith belief with respect to future
events, and is subject to risks and uncertainties that could cause
actual performance or results to differ materially from those expressed
in the statements. Delek US undertakes no obligation to update or revise
any such forward-looking statements.
SOURCE: Delek US Holdings, Inc.
U.S. Investor / Media Relations Contact:
Delek US Holdings, Inc.
Noel Ryan III, 615-435-1356
Head of Investor Relations & Corporate Communications