PBF Logistics (NYSE:PBFX) announced its first ever third-party transaction with an agreement to buy four refined products terminals in the Philadelphia area from Plains All American Pipeline (NYSE:PAA) for $100 million. This is the kind of acquisition MLP investors like to see: an attractive multiple, accretive, fee-based cash flow, and valued-added optionality to the general partner - PBF Energy (NYSE:PBF). The acquisition essentially doubles the partnership's storage capacity and greatly expands its terminalling footprint while concurrently establishing significant third-party revenue streams. It was an excellent deal for PBFX.
Prior to this transaction, the company had been traveling down the typical drop-down associated with most MLPs linked to a refining GP. Since the IPO in
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