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Oil transportation firm and barge operator TEPPCO Partners, L.P. has announced it has purchased marine assets, including 19 boats and 28 barges, from TransMontaigne Product Services, Inc. for $50 million.

The company said the acquisition complements the partnership’s existing fleet of vessels that currently transports petroleum-based products along the nation’s inland waterway system and in the Gulf of Mexico.

The newly acquired marine assets are based primarily in Miami, Florida, with additional assets located in Mobile, Alabama, and Houston, Texas. The acquired vessels primarily deliver bunker fuels for cruise liners and cargo ships as well as fuel oil for electric generation plants.

“With the addition of these well-maintained assets complementing our existing fleet, TEPPCO has significantly strengthened its position as a major provider of marine services in the Gulf Coast region,” said Jerry E. Thompson, president and chief executive officer of TEPPCO’s general partner.

“The acquisition of these vessels is immediately accretive to distributable cash flow per unit, and is supported by long-term contracts of up to five years with well-capitalized counterparties at attractive terms. This purchase is an example of our stated objective of leveraging the partnership’s diverse geographic footprint to pursue targeted growth opportunities.”

"Market fundamentals in the areas currently served by the acquired assets offer TEPPCO the potential to expand relationships with existing customers, and provide additional transportation services to other third parties," the company added.

TEPPCO also expects the transaction to provide synergies and opportunities to optimize the existing fleet acquired in February 2008, resulting in the formation of the Marine Services segment. With the TransMontaigne purchase, TEPPCO has increased its fleet to 70 boats and 153 barges.