Blackstone Infrastructure Partners has entered into an agreement with Tallgrass, The Energy and Minerals Group and Kelso & Co to acquire controlling interest in Tallgrass Energy.
The agreement comprises the acquisition of 100% of the memberships interest in Tallgrass Energy’s general partner as well as a 44% economic interest in Tallgrass for $3.3 billion. Affiliates of GIC, Singapore’s sovereign wealth fund, will be a minority investor in the transaction.
Tallgrass president and CEO David Dehaemers says: ‘Blackstone’s scale, long-term capital, and investment expertise across the energy industry make it an ideal partner for our business as we continue to create value and invest capital in accretive growth opportunities. We appreciate the successful partnership we have had with Kelso and EMG since 2012 and thank them for their significant support.
Sean Klimczak, global head of infrastructure at Blackstone, adds: ‘Tallgrass is managed by an exceptional team that has an outstanding track record of commercial, operational and financial success. This transaction represents a rare opportunity to invest in a large-scale US midstream infrastructure platform that connects high-production supply basins to key markets and is underpinned by a long-term contracts.’
The transaction is expected to close in the first quarter of 2019.