$6.5B Deal to Sell Buckeye Partners to an Investment Firm

Buckeye Partners, a Houston pipeline operator which had struggled financially, decided to sell itself to an Australian investment firm focused on pipelines, terminals, roads and other infrastructure for $6.5 billion.

"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.

"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.

The pipeline operator 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, and 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.

Source:
chron