Kinder Morgan to acquire
four Slay Industries terminals
Feb 4, 2010 10:36 AM
Kinder Morgan Energy Partners LP has signed a definitive purchase and sale agreement to acquire four terminals from Slay Industries for approximately $98 million.
The facilities include a marine terminal in Sauget IL, a transload liquid operation in Muscatine IA, a liquid bulk terminal in St Louis MO, and a warehousing distribution center in St Louis. This acquisition, which gives KMP a foothold into the St Louis terminal market, complements the company’s terminal network by adding a diverse mix of liquid and bulk capabilities. Terminals being purchased have long-term contracts with large credit-worthy shippers.
As part of the transaction, KMP and Slay Industries have entered into a joint venture agreement at the Kellogg Dock coal bulk terminal, in Modoc IL, and the newly created North Cahokia terminal in Sauget, which has 175 acres to develop. All of the assets in Sauget have access to the Mississippi River and five rail carriers.
“This acquisition, along with the joint venture we have entered into with Slay, will give customers unparalleled access to major markets via rail and waterway,” said KMP Terminals President Jeff Armstrong. Upon closing, the transaction is expected to be immediately accretive to cash distributable to KMP unitholders.
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