Valero Energy Corp., one of the world's largest oil refiners, said Thursday it has agreed to sell its refinery in Krotz Springs, La., to Dallas-based Alon USA Energy Inc. for $333 million plus performance bonuses.
The deal includes an earnout currently valued at more than $100 million, plus other possible income from the refinery. The total value of these provisions will be determined when the deal closes, Valero said.
The Louisiana refinery produces about 85,000 barrels of oil per day.
Valero said the sale is part of a plan to focus on its core refineries, where it expects higher returns. The company said it is also exploring options, including the possible sale, for its refineries in Aruba, Memphis, Tenn.; and Ardmore, Okla.
The sale has been approved by both companies' boards and is expected to close in July, pending regulatory approvals.
JPMorgan Securities Inc. acted as Valero's adviser in the deal.
Valero shares fell 50 cents to $47.11 in morning trading. Alon shares fell 24 cents to $13.02.
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