Kinder Morgan expands terminal holdings
Kinder Morgan Energy Partners LP, Houston, said Monday it's acquiring Delta Terminal Services Inc. for $114 million in cash. The transaction is a 'great fit' with KMP's recent acquisition of 12 GATX terminals and two pipeline systems, said Kinder Morgan (OGJ Online, Dec. 1, 2000).
Kinder Morgan Energy Partners LP (KMP), Houston, will expand its terminal system by acquiring Delta Terminal Services Inc. for $114 million in cash. The transaction is a "great fit" with KMP's recent acquisition of GATX terminals, said Kinder Morgan (OGJ Online, Dec. 1, 2000).
It gives KMP liquids terminals in two new locations, including access to the important Port of New Orleans market, said Richard D. Kinder, chairman and CEO of KMP.
The Delta deal includes two liquid bulk storage terminals in New Orleans, La., and Cincinnati, Ohio, with respective storage capacities of 2.5 million bbl and 500,000 bbl. The facilities provide services to producers of petroleum, chemicals, and other products.
The purchase also increases KMP's total announced acquisitions in 2000 to more than $2 billion and represents half of the transactions KMP expects to announce in December.
GATX Terminals Corp., a subsidiary of Chicago-based GATX Corp., agreed to sell its US pipeline and terminal businesses to KMP for $1.15 billion cash and assumed debt (OGJ Online, Dec. 1, 2000).
Moody's Investors Service confirmed the rating of Kinder Morgan Energy Partners after the announcement of the GATX deal, and said its outlook for the company is stable.