Kinder Morgan Inc. (NYSE: KMI) and Brookfield Infrastructure Partners LP (NYSE: BIP, TSX: BIP.UN) have a definitive agreement whereby they will jointly acquire, from Myria Holdings Inc., the 53% equity interest in Natural Gas Pipeline Co. of America LLC (NGPL) not already owned by them for a total purchase price of $242 million.
KMI will pay $136 million and increase its ownership interest from 20% to 50%, and Brookfield Infrastructure will pay $106 million and increase its ownership from 27% to 50%. The transaction values NGPL at a total enterprise value of $3.4 billion, inclusive of existing debt.
NGPL, which is currently operated by KMI, is one of the largest interstate pipeline systems in the country, with 9,200 miles of pipeline, more than 1 million horsepower of compressor facilities, and 288 billion cubic feet of working gas storage.
The transaction is expected to close later this year, and is subject to customary closing conditions, including regulatory approval. KMI will continue to operate NGPL, and expects that the transaction will be immediately accretive to KMI’s cash available to pay dividends.
Evercore acted as strategic advisor to KMI; both Bracewell & Guiliani and Weil, Gotshal & Manges acted as legal counsel to KMI. Cleary Gottlieb Steen & Hamilton acted as legal counsel to Brookfield Infrastructure.