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Buckeye Partners Is Acquired by IFM Investors

IFM Investors announced that it acquired Buckeye Partners. Buckeye’s assets include 6,000 miles of pipeline, with over 100 delivery locations and 115 liquid petroleum products terminals with aggregate tank capacity of over 118 million barrels, and a network of marine terminals located primarily in the East and Gulf Coast regions of the United States, as well as in the Caribbean.

 “The completion of this transaction marks a significant milestone in Buckeye’s 133-year history,” said Clark C. Smith, president and chief executive officer of Buckeye. “This ownership structure will provide Buckeye with superior access to capital to execute on its long-term business strategy, and we look forward to working with IFM during this next chapter in Buckeye’s story.”

“Buckeye represents a natural extension of IFM’s expertise in investing in, operating and growing essential midstream energy infrastructure in North America,” said Jamie Cemm, IFM’s executive director.

The acquisition, which was announced in May 2019, received approval from Buckeye’s unitholders on July 31, 2019, and became effective on Nov. 1, 2019.

Under the terms of the merger agreement, a wholly owned subsidiary of the IFM Global Infrastructure Fund advised by IFM merged with and into Buckeye, with Buckeye surviving the merger as a wholly owned subsidiary of the Fund. In the merger, all of the outstanding limited partnership units of Buckeye (other than certain excluded units) were converted into the right to receive $41.50 per limited partnership unit. The all-cash transaction is valued at $10.3 billion enterprise value and $6.5 billion equity value.

In connection with the closing of the transaction, trading of the Buckeye limited partnership units on the New York Stock Exchange was suspended effective Nov. 1, and Buckeye has requested that its limited partnership units be delisted from the NYSE.

IFM Investors is a global institutional funds manager with US$103 billion under its management. It is owned by 27 pension funds. For more information visit: www.ifminvestors.com.

Buckeye Partners, L.P. owns and operates a diversified global network of integrated assets providing midstream logistic solutions, primarily consisting of the transportation, storage, processing and marketing of liquid petroleum products. Buckeye is one of the largest liquid petroleum products pipeline operators in the United States in terms of volumes delivered.

Buckeye also uses its service expertise to operate and/or maintain third-party pipelines and terminals and perform engineering and construction services for its customers.

 Buckeye’s global network of marine terminals enables it to facilitate global flows of crude oil and refined petroleum products, offering its customers connectivity between supply areas and market centers through some of the world’s most important bulk storage and blending hubs.

Buckeye’s flagship marine terminal in The Bahamas, Buckeye Bahamas Hub, is one of the largest marine crude oil and refined petroleum products storage facilities in the world and provides an array of logistics and blending services for the global flow of petroleum products. Buckeye’s Gulf Coast regional hub, Buckeye Texas Partners, offers marine terminals, storage and processing capabilities. Buckeye is also a wholesale distributor of refined petroleum products in certain areas served by its pipelines and terminals. More information on Buckeye can be found at www.buckeye.com.

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