ArcLight sheds asphalt outfit

ArcLight Capital Partners has offloaded Associated Asphalt Partners to Goldman Sachs Capital Partners for a purported $400m. ArcLight bought Associated in 2006, grouping the company in its midstream portfolio.

Boston-headquartered ArcLight Capital Partners has ended its six-year ownership of Associated Asphalt Partners with a sale of the Virginia-based company to Goldman Sachs Capital Partners (GS Capital Partners).

GS Capital Partners, the $39 billion private equity arm of Wall Street firm Goldman Sachs, first agreed to buy Associated Asphalt for a reported $400 million in February. KeyBanc Capital Markets led the debt syndication for GS, along with Nomura Group and Fifth Third Bank. Simpson Thatcher advised GS on the deal, the law firm confirmed.

ArcLight bought Associated in 2006 from Thayer Capital Partners for an undisclosed sum, listing the Roanoke, Va.-based company as an “active” midstream energy investment on its website. Associated is a terminaling and storage operation established in 1948. In 2007, ArcLight, using its ownership of Associated, bought Tampa, Florida-based EA Mariani Asphalt Company. Heidi Milne, investor relations principal at ArcLight, did not return a voicemail message seeking further comment.

ArcLight, an energy investment firm with $10 billion under management, has a $1.7 billion “midstream” portfolio, encompassing gathering, processing and storage. Daniel Revers and Robb Turner started ArcLight in 2000.