Investment firm pays $6.5B for pipeline operator Buckeye Partners

Photo: Gary Mamay, Buckeye Partners
Photo: Gary Mamay, Buckeye Partners

Houston pipeline firm Buckeye Partners will sell for $6.5 billion to an Australian investment firm focused on pipelines, terminals, roads and other infrastructure.

Buckeye Partners, which had struggled financially of late, decided to sell itself to IFM Investors after a strategic review, previously selling a large chunk of assets last year.

“Buckeye’s Board recently reviewed strategic options for the business and determined that IFM’s proposal to acquire Buckeye is in the best interest of Buckeye,” said Buckeye Chairman and Chief Executive Clark Smith.

The all-cash deal is a 27 percent premium on Buckeye’s stock price on Thursday.

Buckeye owns about 6,000 miles of petroleum pipelines, 115 terminals and a large supply of storage tanks focused primarily along the East Coast and Gulf Coast.

IFM is a global firm with a U.S. headquarters in New York that is owned by a group of Australian pension funds for nonprofit firms. IFM manages about $90 billion of assets, including nearly $40 billion in infrastructure projects like pipelines and toll roads.

“This acquisition is aligned with IFM’s focus on investing in high quality, essential infrastructure assets that underpin the economies in which they operate,” said Julio Garcia, head of North American infrastructure for IFM.

This article first appeared on the Houston Chronicle – an Energy Voice content partner. For more from the Houston Chronicle click here.

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