<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8 - K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): AUGUST 27, 1995
KANEB SERVICES, INC.
- --------------------------------------------------------------------------------
(Exact name of registrant as specified in its charter)
DELAWARE
- --------------------------------------------------------------------------------
(State or other jurisdiction of incorporation)
1-5083 74-1191271
- --------------------------------------------------------------------------------
(Commission File Number) (IRS Employer Identification No.)
2435 N. Central Expressway, Seventh Floor, Richardson, Texas 75080
- --------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 699-4000
----------------
<PAGE> 2
ITEM 5. OTHER EVENTS.
On August 27, 1995, the Registrant, through its wholly-owned subsidiary,
Kaneb Pipe Line Company, as general partner for and on behalf of Kaneb Pipe
Line Partners, L.P., its operating partnership, Kaneb Pipe Line Operating
Partnership, L.P., signed definitive purchase agreements to acquire from
Steuart Petroleum Company and certain of its affiliates (collectively,
"Steuart") the liquids terminaling assets of Steuart. It is anticipated that
the acquisition price of approximately $82 million will be financed by bank
borrowings. The Steuart terminaling assets consist of seven petroleum products
terminals located in the District of Columbia, Florida, Georgia, Maryland and
Virginia and the pipeline and terminaling services to Andrews Air Force Base in
Maryland. The terminals have in the aggregate approximately 9 million barrels
of storage capacity in 87 tanks. Steuart's two largest facilities are located
near Washington, D.C. and Jacksonville, Florida. The Piney Point, Maryland
terminal is the closest deep water petroleum storage facility to Washington
D.C. The Piney Point Maryland terminal has 30 tanks with approximately 5.5
million barrels of aggregate storage capacity, which is currently used to store
petroleum products,consisting primarily of fuel oil. The Jacksonville terminal
has 28 tanks with approximately 2.1 million barrels of aggregate storage
capacity, which is currently used to store petroleum products including
gasoline, No. 2 oil, No. 6 oil, diesel, jet fuel, kerosene and bunker fuel.
The closing of the Steuart acquisition is conditioned upon satisfactory
completion of a due diligence investigation, receipt of all necessary consents
and approvals, the execution of certain throughput agreements and certain other
conditions. If all conditions to closing are satisfied, it is anticipated that
the Partnership would acquire the Steuart terminals prior to October 31, 1995.
There can be no assurance, however, that the acquisition will be consummated
or, if consummated, that the terms of the acquisition will not vary materially
from those described herein.
<PAGE> 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
KANEB SERVICES, INC.
--------------------------
(Registrant)
Date: August 29, 1995 /s/ Tony M. Regan
--------------------------
Tony M. Regan
Controller
