June 2019, Vol. 246, No. 6

Global News

Buckeye Partners to Be Acquired for $10.3 Billion

Buckeye Partners, which owns and operates one of the largest diversified networks of integrated midstream assets in North America, has agreed to be acquired by IFM Investors in an all-cash transaction with an enterprise value of $10.3 billion.

Under the definitive agreement, IFM’s Global Infrastructure Fund will acquire all of the outstanding public common units of Buckeye for $41.50 per common unit.  The price represents a 27.5% premium to Buckeye’s closing unit price on Thursday and a 31.9% premium to its volume-weighted average unit price since Buckeye announced a series of strategic actions to strengthen its financial position last November. 

The merger, which was unanimously approved by Buckeye’s board of directors, is subject to the approval of regulators and a majority of unitholders.  The deal is valued at $10.3 billion enterprise value and $6.5 billion equity value.

Buckeye’s midstream assets include 6,000 miles of pipeline with over 100 delivery locations and 115 liquid petroleum products terminals with aggregate tank capacity of over 118 million barrels. Its network of marine terminals is located primarily in the East Coast and Gulf Coast regions of the United States, as well as in the Caribbean. P&GJ

Related Articles


{{ error }}
{{ comment.comment.Name }} • {{ comment.timeAgo }}
{{ comment.comment.Text }}