Canada-based Tidewater Midstream and Infrastructure announced on Sept. 12 that it had completed an asset acquisition from its subsidiary Tidewater Renewables.

According to the company's website, Tidewater Midstream owns a 69% stake in Tidewater Renewables. The assets involved in the deal include a catalytic cracking processing infrastructure, working interests in refineries located in Prince George and natural gas storage facilities at the Brazeau River Complex in Alberta.

The assets have historically generated annual adjusted EBITDA of $40 million to $50 million. The cash consideration for the acquisition is $122 million, plus the assumption of certain liabilities related to the acquired assets, Tidewater said in a press release.

Jeremy Baines, Tidewater Midstream CEO, said the transaction benefits both the corporation and the subsidiary in the press release.

"The corporation will benefit from acquiring a significant amount of deconsolidated EBITDA and cash flow that was previously dropped down to Tidewater Renewables during its initial public offering. Tidewater Renewables will have the ability to repay its first lien debt as well as establish a contracted purchaser for the BC LCFS (British Columbia low carbon fuel) credits it produces and will be able to focus its energies on its renewable fuels business."