IFM Global Infrastructure Fund is set to acquire Buckeye Partners in a transaction valued at $6.5 billion equity value.
Buckeye owns and operates one of the largest diversified networks of integrated midstream assets, including 6,000 miles of pipeline with more than 100 delivery locations and 115 liquid petroleum products terminals with capacity of more than 118 million barrels. Its network of marine terminals is located primarily in the East Coast and Gulf Coast regions of the US, as well as the Caribbean.
Clark C. Smith, chairman, president and CEO of Buckeye, says: 'Buckeye's board of directors recently reviewed strategic options for the business and determined that IFM's proposal to acquire Buckeye is in the best interest of Buckeye.
'The proposed transaction will provide Buckeye with superior access to capital to execute on its long-term business strategy.'
IFM has $90 billion of assets under management, including $39.1 billion in infrastructure. It has interests in 32 investments across North America, Australia and Europe, including several midstream assets.
Julio Garcia, head of infrastructure, North America of IFM, says: 'This acquisition is aligned with IFM's focus on investing in high quality essential infrastructure assets that underpin the economies in which they operate.'
'The proposed acquisition of Buckeye is a complementary addition to IFM's substantial investments in energy infrastructure across North America and globally,' adds Jamie Cemm, executive director of IFM.
The transaction is expected to close in the fourth quarter of 2019.
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