Magellan Midstream Partners LP will sell three marine terminals to Buckeye Partners LP for $250 million and repurchase up to $750 million of common units through 2022, the company announced Jan. 21.

"Optimization of our asset portfolio, including divestiture of facilities outside our strategic footprint, is an important element to maximize unit holder value and our strong financial position," Michael Mears, the president, chairman and CEO of Magellan's general partner, said in a statement. "In addition, we intend to opportunistically utilize additional tools, including the unit repurchase program announced today as well as potential special distributions, to accomplish our core goal of maximizing value for our investors."

Buckeye Partners was taken private by private equity firm IFM Investors Pty Ltd. in 2019.

The terminals are in New Haven, Conn.; Wilmington, Del.; and Marrero, La. The deal is expected to close in late first quarter or early second quarter. Jefferies served as financial adviser and GableGotwals served as legal counsel to Magellan.

The repurchase program does not obligate the partnership to acquire any particular amount of common units and may be suspended or discontinued at any time at Magellan's discretion.