Ergon, Inc. Announces Agreement to Sell Ownership Interest in Lion Oil Company
Mon., Mar 21, 2011
Ergon, Inc., announced today that it has entered into an agreement to sell its 53.67% ownership interest in Lion Oil Company (“Lion”) to Delek US Holdings, Inc. (“Delek”), 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% ownership interest in Paline Pipeline Company to Ergon. Lion will, however, retain its other operations, including its El Dorado, Arkansas refinery and its terminal operations, as well as the following 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, Arkansas has been a reliable 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.
In 1985, Ergon led a group of investors in forming the “New” Lion Oil Company to purchase the El Dorado refinery. Since 1985 over $1 billion has been invested in the facility to enhance its operations and to comply with environmental laws. Over the past 26 years, Lion’s success as an independent refiner has allowed Lion to be a large contributor to the economic stability and welfare of El Dorado and South Arkansas. Lion’s President Lee Lampton stated, “Lion” is a company built through the commitments of exceptional employees. Lion’s success can be directly attributed to the innovation, professionalism and dedication of its employees and investors. We look forward to Delek continuing Lion’s long history of successful crude oil refining in El Dorado.”
About Ergon, Inc.
Ergon, Inc., is a privately held company and operates under six primary business segments: Refining & Marketing, Asphalt & Emulsions, Transportation & Terminaling, Oil & Gas, Embedded Computing and Real Estate.
Director of Communications