Boardwalk Pipeline Partners and a unit of its general partner Loews Corp have signed a definitive agreement to buy PL Midstream from PL Logistics for a cash consideration of $625m. The acquisition is expected to close in late September or early October.
Stan Horton, president and CEO of Boardwalk, said:
The PL Midstream acquisition supports our long-term growth strategy of diversifying into industries that complement our core natural gas pipeline and storage businesses.
This acquisition enables Boardwalk to enter the natural gas liquids business with strategically located and well-contracted assets and a strong, experienced management team. We are pleased to expand into a business with similar operational and financial characteristics to our core businesses, yet a different commodity market environment.
PL Midstream provides salt-dome storage, pipeline transportation, fractionation and brine supply services for producers and consumers of petrochemicals, natural gas liquids and natural gas through two hubs in southern Louisiana, the Choctaw Hub in the Mississippi River Corridor and the Sulphur Hub in the Lake Charles area.
Barclays acted as exclusive financial adviser to Boardwalk; Wells Fargo Securities acted as exclusive financial adviser to PL Midstream on this transaction.