Riverstone Holdings LLC entered into a definitive agreement on Nov. 9 to buy International-Matex Tank Terminals (IMTT) from Macquarie Infrastructure Corp. for total consideration of $2.685 billion subject to customary closing adjustments.
Established in 1939, IMTT is an industry leader in the storage and handling of bulk liquid products that are used in energy, industrial, consumer and transportation industries. Upon closing, expected late 2020 or early 2021, the company will retain its name IMTT and operate as a Riverstone portfolio company.
“Riverstone has a long-standing track record owning and operating terminal assets, and we are excited about the opportunities at IMTT to drive growth and performance to deliver attractive returns to our investors,” said Baran Tekkora, partner and co-head of private equity at Riverstone.
Headquartered in New Orleans, IMTT operates 19 bulk liquid storage terminals East, West and Gulf Coasts, as well as the Great Lakes region with total storage capacity of approximately 48 million barrels.
IMTT’s operations are concentrated in critical U.S. economic hubs and underpinned by a diversified base of customers and products served, including large and growing positions in commodities other than petroleum products. Approximately one-third of the company’s storage capacity is in each of the New York Harbor and Lower Mississippi River. The balance of the company’s assets are spread across the U.S. and Canada.
Carlin Conner, senior adviser to Riverstone, said, “IMTT is one of the premier independent terminalling platforms in the world. The company is in a great position to leverage its leading North American locations to continue providing services across refined petroleum products, chemicals, vegetable and tropical oils, and renewable fuels.”
John Jessup, managing director at Riverstone, added, “IMTT is a unique infrastructure platform that has supported the growth and evolution of its customers and markets for many years. We are excited to be a part of the next phase of that tradition.”
Riverstone Holdings LLC is an energy and power-focused private investment firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre Jr. with approximately $41 billion of capital raised. With offices in New York, London, Houston and Mexico City, the firm has committed over $40 billion to more than 190 investments in North America, Latin America, Europe, Africa, Asia and Australia
Jefferies LLC was exclusive financial adviser to Riverstone and provided committed debt financing in support of the transaction. Latham & Watkins LLP provided the company legal counsel.
Lazard and Evercore acted as financial advisers to Macquarie Infrastructure, and White & Case provided legal support.
Macquarie Infrastructure intends to use all net proceeds from the sale to pay a special dividend of approximately $10.75 per share and to repay or offset holding company level debt of approximately $400 million.
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Members will likely reach a compromise in which production is increased.
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