The acquisition adds one of the largest diversified networks of integrated midstream assets to IFM's extensive investments in energy infrastructure across North America
Australian investment management firm IFM Investors, through its affiliated entities, has completed the acquisition of US-based midstream energy company Buckeye Partners.
Under the terms of the merger agreement signed in May 2019, a wholly owned subsidiary of the IFM Global Infrastructure Fund advised by IFM merged with and into Buckeye in an all-cash transaction that as an enterprise value of $10.3bn and equity value $6.5bn.
IFM executive director Jamie Cemm said: “Buckeye represents a natural extension of IFM’s expertise in investing in, operating and growing essential midstream energy infrastructure in North America.
“Buckeye is a great company with a rich history, and we look forward to steering the team and company through the next phase of the US and global energy evolution.”
Buckeye is a diversified global network of integrated midstream assets
IFM said that the acquisition of Buckeye will add one of the largest diversified networks of integrated midstream assets to its extensive investments in energy infrastructure across North America.
Also, the transaction is in line with the company’s aim to invest in high-quality, essential infrastructure assets that reinforce the economies in operating locations.
Buckeye owns and operates a diversified global network of integrated assets providing midstream logistic solutions, primarily consisting of the transportation, storage, processing, and marketing of liquid petroleum products.
The assets include 6,000 miles (9.656km) of pipeline, more than 100 delivery locations and 115 liquid petroleum products terminals, more than 118 million barrels tank capacity, and a network of marine terminals located in the East and Gulf Coast regions of the US, and in the Caribbean.
Buckeye president and chief executive officer Clark C Smith said: “The completion of this transaction marks a significant milestone in Buckeye’s 133-year history. This ownership structure will provide Buckeye with superior access to capital to execute on its long-term business strategy, and we look forward to working with IFM during this next chapter in Buckeye’s story.”
IFM Investors is an international institutional funds manager with $103bn under its management, with investment teams in Europe, North America, Australia and Asia.