Toronto-based income fund said operating unit only provides services to Suncor's Montreal refinery
TORONTO—Chemtrade Logistics Income Fund says it has an agreement to sell its refinery services business in Montreal to Suncor Energy Products Inc. for roughly $120 million.
The Toronto-based income fund says it will use the net proceeds of the sale to reduce debt.
Chemtrade says its Montreal business provides sulphur removal and other services only to Suncor’s Montreal refinery.
It acquired the operation in 2011 as part of its acquisition of Marsulex Inc., and will realize a gain of approximately $24 million on the sale which is expected to close in June.
Chemtrade says it will continue to market sulphur and sodium bisulphite produced by the Montreal plant.
The company provides industrial chemicals and services to customers in North America and around the world.
Chemtrade is one of North America’s largest suppliers of sulphuric acid.