A Mississippi company is buying the Mexican asphalt business of an Oklahoma company.
SemGroup Corp. of Tulsa, Oklahoma said Monday that it was selling the business to Ergon Inc. of Flowood, Mississippi, for an estimated $70 million.
The business includes 14 asphalt terminals and two laboratories.
Privately-held Ergon owns refineries in Mississippi and West Virginia and also has other mostly petroleum-related businesses.
SemGroup said it doesn’t see the unit as a core business, saying it will use the money to help pay for the $2.1 billion purchase of a Houston oil terminal.
The sale is supposed to be completed sometime after March 31.
Ergon Asphalt & Emulsions President Baxter Burns says the company has been interested in expanding into Mexico. Ergon says it will keep current employees and managers.
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