GE buys majority stake in US fuel-storage terminals
GE is expanding into petroleum product terminals by investing $85 million to become a majority owner of Lightfoot Capital Partners, the company said on Monday.
GE Energy Financial Services purchased a 58% interest in New York-based Lightfoot Capital from an investment vehicle managed by an affiliate of Magnetar Capital.
Lightfoot Capital, in turn, is the majority-owner of Arc Terminals, which operates petroleum product terminals in eight US states.
“Our investment in Lightfoot Capital reflects our strategy of pursuing growth platforms in critical US energy infrastructure, working with experienced management in areas we know well,” said Dan Castagnola, a managing director at GE Energy Financial Services in Houston.
“We are deploying our capital, expertise and potentially some additional assets to support Lightfoot Capital’s transition into a successful Master Limited Partnership,” he added.
GE Energy Financial Services already holds an interest in such a partnership with Regency Energy Partners, a midstream natural gas services provider.
By investing in Lightfoot Capital, GE is expanding beyond midstream to petroleum product terminals, diversified across regions, sites, customers and products, it said.
“GE Energy Financial Services’ acquisition of a majority interest in Lightfoot Capital significantly expands our ability to both source and complete attractive acquisitions, and accelerates our growth strategy,” said Vince Cubbage, CEO of Lightfoot Capital.
In addition to GE, Lightfoot Capital’s investors are Atlas Energy, Magnetar Capital, Tortoise Capital Resources Corp. and Triangle Peak Partners Private Equity, as well as funds and accounts under management by BlackRock Investment Management.
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