Hartree Partners Completes Purchase of Controlling Interest in Sprague Resources

Rhea-AI Summary

On May 28, 2021, Sprague Resources LP (SRLP) announced the closure of a transaction with Hartree Partners, LP, wherein Hartree has acquired the general partner interest, incentive distribution rights, and 16,058,484 common units previously held by Axel Johnson Inc. (totaling $290 million). The deal includes approximately $265 million for the common units and $25 million for the partner interest and distribution rights. This acquisition positions Hartree as a significant stakeholder in Sprague, enhancing its strategic position in the commodity market.

Positive

• Acquisition of 16,058,484 common units strengthens Hartree's position in SRLP.
• Total transaction value of $290 million reflects robust valuation.

Negative

• None.

PORTSMOUTH, N.H., May 28, 2021 (GLOBE NEWSWIRE) -- Sprague Resources LP (SRLP) (“Sprague”) and Hartree Partners, LP (“Hartree”) announced today that affiliates of Hartree have closed the purchase of the general partner interest, the incentive distribution rights and all of the common units representing limited partner interests (“Common Units”) that a subsidiary of Axel Johnson Inc. (“Axel Johnson”) had held in Sprague.

The aggregate purchase price paid by Hartree to Axel Johnson was $290.0 million, consisting of (i) approximately $265.0 million attributable to the purchase of 16,058,484 Common Units, and (ii) approximately $25.0 million attributable to the general partner interest and incentive distribution rights.

About Sprague Resources LP
Sprague Resources LP is a master limited partnership engaged in the purchase, storage, distribution and sale of refined petroleum products and natural gas. Sprague also provides storage and handling services for a broad range of materials. More information concerning Sprague can be found at www.spragueenergy.com.

About Hartree Partners, LP
Hartree is a well-established global merchant commodities firm concentrating in energy and its associated industries. Formed in 1997, the firm focuses on identifying value in the production, refinement, transportation and consumption of tradable commodities including: electric power, natural gas, natural gas liquids, refined products, crude oil, fuel oil, freight, metals, carbon and petrochemicals, among others. Hartree is jointly owned by its senior management and certain funds managed by Oaktree Capital Management, L.P.

Advisors
Intrepid Partners, LLC acted as exclusive financial advisor to Axel Johnson. Baker Botts L.L.P. and Vinson & Elkins LLP acted as legal advisors to Axel Johnson and Hartree, respectively. 

Sprague Investor Contact:
Paul Scoff
+1 800.225.1560
investorrelations@spragueenergy.com

FAQ

What was the total value of the acquisition by Hartree Partners of Sprague Resources LP (SRLP)?

The total value of the acquisition was $290 million.

How many common units did Hartree Partners acquire from Axel Johnson in the Sprague Resources deal?

Hartree Partners acquired 16,058,484 common units.

What interests did Hartree Partners purchase in Sprague Resources LP?

Hartree Partners purchased the general partner interest, incentive distribution rights, and common units.

When was the acquisition of Sprague Resources LP (SRLP) by Hartree Partners announced?

The acquisition was announced on May 28, 2021.