June 28, 2010 / 9:38 PM / in 7 years

UPDATE 1-Sunoco Logistics to buy some Texon assets for $140 mln

1 Min Read

* Says deal to add to earnings immediately

* To fund deal with $100 mln loan from Sunoco Inc

* Deal includes technology to blend butane into gasoline

June 28 (Reuters) - Sunoco Logistics Partners L.P. SXL.N said Monday it signed an agreement to buy a butane-blending business from Texon L.P. for $140 million plus inventory.

The Philadelphia-based oil and gas pipeline operator, which expects the deal to add to earnings immediately, said it would fund the transaction with a $100-million loan from Sunoco Inc (SUN.N) and borrowings under its revolving credit facility.

Sunoco Logistics said the deal includes patented technology for blending butane into gasoline, contracts with several terminal operators currently using the technology, butane inventories, and other related assets.

Units of the partnership closed at $72.24 Monday on the New York Stock Exchange. (Reporting by Adveith Nair in Bangalore; Editing by Vyas Mohan)

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