Martin Midstream Ends $100M Merger Agreement, Cancels Special Meeting December 30, 2024 a publicly traded limited partnership based in Kilgore, Texas, has announced the termination of its previously disclosed Agreement and Plan of Merger with Martin Resource Management Corporation (MRMC). The merger agreement, originally dated October 3, 2024, would have resulted in MRMC acquiring all outstanding common units of MMLP that were not already owned by MRMC and its subsidiaries.
Martin Midstream Ends $100M Merger Agreement, Cancels Special Meeting
This decision to terminate the agreement was reached through mutual written consent between MRMC and MMLP, with the approval of the Conflicts Committee of the Board of Directors of Martin Midstream GP LLC, the general partner of MMLP. Under the terms of the agreement, the partnership will continue as a standalone publicly traded entity, retaining its operational independence and strategic direction.
Cancellation of Special Meeting and Proposals
As part of the decision to terminate the merger agreement, MMLP has also canceled its special meeting of unitholders, which had been scheduled for December 30, 2024. This meeting was intended to facilitate a vote on proposals outlined in the company’s definitive proxy statement filed with the Securities and Exchange Commission on November 27, 2024. These proposals have been officially withdrawn from consideration.
Leadership Comments
Bob Bondurant, President and Chief Executive Officer of Martin Midstream GP LLC, emphasized the value of unitholder engagement throughout this process. In a statement, he said:
“We appreciate the feedback we have received from unitholders during our extensive outreach and engagement over the last several weeks. We greatly value unitholders’ perspectives and are pleased that unitholders have confidence in the future of MMLP as a standalone company. We will continue to focus on executing our long-term strategy, including strengthening the balance sheet through debt reduction and improving operating results, to create value for unitholders.”
Bondurant’s remarks underline the company’s commitment to enhancing financial stability and operational efficiency while maintaining transparency with its unitholders.
Focus on Core Operations and Strategic Vision
Martin Midstream Partners L.P. has a diversified portfolio of operations concentrated in the Gulf Coast region of the United States. Its business lines encompass terminalling, processing, and storage services for petroleum products and by-products; land and marine transportation services for petroleum products, chemicals, and specialty products; sulfur and sulfur-based products processing and distribution; and the marketing, distribution, and transportation of natural gas liquids alongside blending and packaging services for specialty lubricants and greases.
The termination of the merger agreement allows MMLP to concentrate on its core competencies and pursue a standalone strategy aimed at delivering sustained value for its stakeholders. The company plans to strengthen its financial position by reducing debt and improving operational performance across its diverse business units.
Unitholder Engagement and Confidence
The decision to remain a standalone publicly traded company reflects a commitment to unitholder interests and a recognition of the confidence investors have in MMLP’s ability to thrive independently. By engaging extensively with unitholders over recent weeks, MMLP’s leadership has gained valuable insights into their expectations and priorities. This collaborative approach will guide the company as it works to achieve its strategic objectives.
About Martin Midstream Partners L.P.
Martin Midstream Partners L.P. operates across several key sectors within the energy and chemical industries, offering specialized services that include:
- Terminalling, Processing, and Storage: Providing critical infrastructure for petroleum products and by-products.
- Transportation Services: Operating land and marine fleets to deliver petroleum products, chemicals, and specialty materials.
- Sulfur and Sulfur-Based Products: Processing, manufacturing, marketing, and distributing sulfur-based solutions.
- Natural Gas Liquids and Specialty Products: Marketing and distributing natural gas liquids, alongside blending and packaging specialty lubricants and grease.
Headquartered in Kilgore, Texas, MMLP’s operations are primarily concentrated in the Gulf Coast region, a strategic area for the energy sector.
