Boardwalk to acquire PL Midstream
An acquisition agreement has been reached between Boardwalk Pipeline Partners and PL Midstream.
Business negotiations between Boardwalk Pipeline Partners and PL Midstream have resulted in a takeover agreement being signed.
Boardwalk, which operates in the natural gas transportation and storage sector, confirmed it had formed a joint venture with a general partner affiliate that had entered into the buy-out deal.
President and chief executive officer of Boardwalk Stan Horton said the move will ensure his company is "strategically-located" in the natural gas liquids industry.
He remarked: "The PL Midstream acquisition supports our long-term growth strategy of diversifying into industries that complement our core natural gas pipeline and storage businesses."
The company is expecting to pay for the takeover with a $225 million (£143 million) five-year bank loan plus equity contributions, with its general partner - Boardwalk Pipelines Holding Corp (BPHC) - owning 67 per cent of the joint venture and Boardwalk getting 33 per cent.
BHPC will be spending $268 million on the acquisition, with Boardwalk paying $132 million.
Posted by Ken Hayes
Source: Boardwalk press release, August 16