TPG Rise Climate to acquire Southern California biobased diesel storage provider Olympus Terminals

TPG Rise Climate, the dedicated climate-investing strategy of TPG’s $19 billion global impact investing platform TPG Rise, announced May 7 that it has signed a definitive agreement to acquire Olympus Terminals, a leading independent storage provider for renewable fuels and refined products in Southern California, majority owned by an affiliated investment fund of Davidson Kempner Capital Management LP and an affiliated investment fund of Intrepid Investment Management LLC.

The transaction will advance TPG Rise Climate’s efforts to reduce transportation-related greenhouse-gas emissions by facilitating the import, storage and distribution of renewable fuels in Southern California and accelerating California’s transition from conventional diesel to renewable diesel.

Headquartered in Long Beach, California, Olympus Terminals owns and operates two storage terminals, including one at the Port of Long Beach with deepwater-dock access, and an interconnected pipeline network in the region.

“Transportation represents the largest share of greenhouse-gas emissions in the United States, and while there is a clear long-term trend towards electrification, additional proven and scalable decarbonization solutions such as sustainable fuels are an essential part of the equation,” said Jonathan Garfinkel, a partner at TPG and senior member of the climate-investing team. “Olympus’ assets and operations are central to the sustainable-fuels ecosystem, and we look forward to partnering with their management team.”

The company’s assets play a key role in the renewable diesel value chain in California.

Renewable diesel penetration (of total diesel pool) is expected to increase significantly in California over the next five years, creating a growing need for import and logistics infrastructure.

In addition to being well-positioned to capitalize on incumbency and structural advantages in the market, Olympus is also contributing to the growth of cleaner diesel fuels by converting storage capacity from conventional to renewable diesel service.

“California is leading the charge in the national transition towards renewable diesel, and we’re proud to possess deep sector expertise, regional know-how, and a strong market position at a pivotal moment for cleaner-fuel adoption across the state and nationwide,” said Vincent Godfrey, CEO of Olympus. “Our firm values the importance of meeting environmental standards and rising demand simultaneously, and we are delighted to be working with TPG Rise Climate to remain the preferred and trusted partner for the storage and delivery of renewable fuels in Long Beach.”

Intrepid Partners LLC served as financial advisor and Paul Weiss, Rifkind, Wharton & Garrison LLP served as legal counsel to Olympus in relation to the transaction.

Jefferies LLC served as financial advisor and Kirkland & Ellis served as legal counsel to TPG.

Olympus terminals is the second-largest independent petroleum-storage provider in Southern California.

Headquartered in Long Beach, California. Olympus Terminals serves the greater Los Angeles area with refined products including diesel, gasoline, renewables and biodiesel.