Pembina, KKR JV to Acquire Energy Transfer Canada in $1.3 Billion Buyout

Energy Transfer LP agreed on March 1 to sell its Western Canadian gas processing business to a joint venture (JV) between Pembina Pipeline Corp. and KKR, marking the Dallas-based company’s exit from Canada.

According to a release, the companies signed a definitive agreement for Energy Transfer to sell its 51% interest in Energy Transfer Canada to the JV, which includes participation by Pembina Pipeline and global infrastructure funds managed by KKR, at a valuation of approximately CA$1.6 billion (US$1.3 billion) including debt and preferred equity. The remaining stake is already owned by KKR’s funds.

“The agreement allows Energy Transfer to divest its high-quality Canadian assets at an attractive valuation to further deleverage its balance sheet and redeploy capital within its U.S. footprint,” Energy Transfer said in the release.