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Martin Resource Management Corp. (MRMC) announced Oct. 3 that it will to acquire Martin Midstream Partners for roughly $132 million, ratcheting up MRMC’s May offer for the company’s outstanding units.
Under the deal, each public common unit holder would receive $4.02 per unit owned, representing a 34% premium MRMC’s to the market May closing price. Initially, Martin Resources offered $3.05 per unit, or about $100.3 million.
The price climbed after New York-based firms capital firms Nut Tree Capital Management and Caspian Capital countered MRMC’s previous offer for Martin Midstream with a non-binding offer of $4 per unit, or roughly $131 million cash.
The firms described their offer in a July 11 letter as a compelling alternative to MRMC’s “below market and conflict-ridden proposal.”
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Firms Blast ‘Conflict-ridden’ Martin Midstream Deal, Launch Counteroffer
MRMC expects to fund the transaction and related transaction costs through cash on hand, cash flow prior to the closing of the transaction, borrowings under MRMC’s existing credit facility and from $5 million in loans from certain members of MRMC management, the company said.
The transaction is expected to close by the end of 2024.
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