Brookfield Infrastructure Partners L.P. entered into a definitive agreement to acquire Colonial Enterprises, Inc. from Shell Midstream Operating LLC, Koch Capital Investments Company, LLC, Caisse de dépôt et placement du Québec, IFM Investors Pty Ltd and KKR & Co. Inc. for an enterprise value of $9 billion.
Brookfield Infrastructure Partners L.P. (NYSE:BIP) entered into a definitive agreement to acquire Colonial Enterprises, Inc. from Shell Midstream Operating LLC, Koch Capital Investments Company, LLC, Caisse de dépôt et placement du Québec, IFM Investors Pty Ltd and KKR & Co. Inc. (NYSE:KKR) for an enterprise value of $9 billion on April 3, 2025. Shell Midstream Operating LLC is selling 16.125% interest for $1.45 billion,inclusive of approximately $500 million in non-recourse debt. BIP?s equity investment is expected to be $500 million, which represents approximately 15% of the total equity investment, funded entirely by proceeds from capital recycling initiatives. 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. The transaction reflects TEV/EBITDA multiple of 9x. The transaction is subject to approval by regulatory board / committee and is expected to close in the in the second half of 2025. As per the filing dated July 31, 2025, the transaction is expected to close in the fourth quarter of 2025.
Brookfield Infrastructure engaged Jefferies LLC, Greenhill & Co. LLC, a Mizuho affiliate, and Morgan Stanley & Co. LLC as joint financial advisors and Kim Hicks, Brittany Sakowitz, Chad M. Smith, Roald Nash, Jacqueline M. Trudeau, and Andrew DeVore of Kirkland & Ellis LLP as legal advisors. Barclays and Evercore acted as the financial advisors to Colonial Enterprises. Shamus Crosby, Ana Sanchez, Nancy Mehlman, David Rubinsky, Krista McManus, Lori Lesser and Toby Chun of Simpson Thacher & Bartlett LLP acted as the legal advisor to KKR. John D. Franchini,Aaron Stine,Lafayette M. Greenfield II,Antonio L. Diaz-Albertini,John C. Garces,Matthew H. Ahrens,Kelly P. Bartley,Alexis Brown-Reilly,Adam Di Vincenzo,Carlos E. Clemente,Jenna McGrath and Max A. Goodman of Milbank LLP acted as legal advisor to Shell Midstream Operating LLC, Koch Capital Investments Company, LLC, Caisse de dépôt et placement du Québec, IFM Investors Pty Ltd and KKR & Co. Inc. (NYSE:KKR).
KKR & Co. Inc. is a financial services group organized around 2 areas of activity:
- insurance (67% of revenues): notably life insurance and pensions. The group also offers reinsurance solutions for private and institutional clients;
- asset management (33%): management of private equity funds, equity funds, alternative credits, real estate assets, energy and infrastructure assets, investment funds, etc. In 2024, KKR & Co. Inc. has USD 637,572 million of assets under management.
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Brookfield Infrastructure Partners L.P. entered into a definitive agreement to acquire Colonial Enterprises, Inc. from Shell Midstream Operating LLC, Koch Capital Investments Company, LLC, Caisse de dépôt et placement du Québec, IFM Investors Pty Ltd and KKR & Co. Inc. for an enterprise value of $9 billion.
