JACKSON — Ergon Inc. has entered into an agreement to sell its 53.67 percent ownership interest in Lion Oil Company to Delek US Holdings Inc., a publicly traded company and an existing shareholder of Lion.
Upon the closing of the transaction during the second quarter 2011, subject to customary closing conditions, Lion will transfer, among other things, its 100 percent ownership interest in Paline Pipeline Company to Ergon. Lion will, however, retain its other operations, including its El Dorado, Ark., refinery and its terminal operations, as well as the subsidiaries Lion Oil Trading & Transportation Inc., Magnolia Pipeline Company, El Dorado Pipeline Company and J. Christy Construction Co. Inc.
Since 1922, under multiple owners, the Lion refinery in El Dorado has been a supplier of petroleum products. Today, the El Dorado refinery has a throughput capacity of approximately 80,000 barrels of sour crude oil and feedstocks per day and is the largest independent refiner of high-sulfur crude oil in its primary market areas of Arkansas, Tennessee, Missouri, Mississippi and northern Louisiana.
Following the announced agreement between Ergon and Delek on the sale of Lion, Ergon Asphalt & Emulsions Inc., (Ergon A&E) announced the continuation of services performed in the marketing of Lion’s paving asphalt under the Lion brand.
Under this agreement, effective at closing during the second quarter 2011, Ergon A&E will continue to market all retail paving asphalt from the Lion refinery in El Dorado as well as from the asphalt terminals in Henderson, Texas, and Muskogee, Okla.
Source: Ergon Inc.