TLP Finance has agreed to acquire the stake it previously didn’t own in TransMontaigne Partners, a Colorado-based terminaling and transportation company, in a deal worth around $536m.
TransMontaigne Partners is a master limited partnership that owns and operates a network of midstream terminals across the US. On the other hand, TLP Acquisition is an indirect subsidiary of ArcLight Energy Partners Fund VI, which is owned by ArcLight, a private equity firm focused on energy infrastructure investments.
As per the merger agreement, TLP Acquisition will buy each of the shares of the midstream company it didn’t own before at $41.00. The offer from TLP Acquisition is more than the $38.00 it had proposed for the same when it had delivered a non-binding offer to the conflicts committee of TransMontaigne Partners in July.
TransMontaigne Partners, in a statement, said: “The conflicts committee of the Partnership’s general partner, after consultation with its independent legal and financial advisors, and following negotiations with ArcLight, resulting in an increased price per common unit and certain other changes, unanimously approved the Merger Agreement and determined it to be in the best interests of the Partnership and its unitholders unaffiliated with ArcLight.”
After the conflicts committee’s approval, the board of directors of TransMontaigne Partners’ general partner approved the merger agreement and recommended shareholders of the midstream company to vote in favor of the merger.
The transaction is anticipated to be completed in the first quarter of 2019 depending on satisfaction of certain conditions.
Headquartered in Denver, TransMontaigne Partners operates along the US Gulf Coast, in the Midwest, in Houston and Brownsville, Texas, along the Mississippi and Ohio Rivers, in the Southeast and also on the West Coast.
The company provides integrated terminaling, storage, transportation and related services for customers focused on distribution and marketing of light and heavy refined petroleum products, crude oil and other liquid products.
TransMontaigne Partners boasts of operating 51 terminal facilities, more than 850 storage tanks and three pipeline systems.
In December 2017, the midstream company acquired the Martinez Terminal and Richmond Terminal from an affiliate of Plains All American Pipeline.