Brookfield Infrastructure announces the acquisition of Colonial Enterprises for $9 B
Brookfield Infrastructure Partners L.P. and its institutional partners reached a definitive agreement to acquire 100% of the world-class midstream asset portfolio Colonial Enterprises, which includes the Colonial Pipeline, for an enterprise value of approximately $9 billion or 9x EBITDA. Colonial is comprised of the largest refined products system in the U.S., spanning approximately 5,500 miles between Texas and New York. The business has a multi-decade track record of strong performance and high utilization serving a high-quality customer base along the U.S. East Coast.
At closing, BIP’s equity investment is expected to be $500 million, which represents approximately 15% of the total equity investment, funded entirely by proceeds from recently announced capital recycling initiatives. The transaction is expected to close in the second half of 2025, subject to customary closing conditions. Debt financing for the transaction was led by Morgan Stanley Senior Funding, Inc. and Mizuho Bank, Ltd., with Morgan Stanley Senior Funding, Inc. acting as sole bookrunner on the term loan facility. Brookfield Infrastructure engaged Jefferies LLC, Greenhill & Co. LLC, a Mizuho affiliate, and Morgan Stanley & Co. LLC as joint financial advisors and Kirkland & Ellis LLP as legal advisor.
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