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American Midstream Partners acquires Southcross Holdings

Published by , Senior Editor
World Pipelines,

American Midstream Partners, LP announced on 1 November that it had signed an agreement to acquire certain assets of Southcross Holdings, LP and has proposed to merge Southcross Energy Partners, L.P. into a wholly owned subsidiary of AMID in two separate transactions valued at approximately US$815 million, including the repayment of net debt.

As a result of the transactions, the pro forma partnership with an enterprise value of US$3 billion is expected to generate annualised 2018 Adjusted EBITDA in excess of US$300 million.

Lynn L. Bourdon, III, Chairman, President and Chief Executive Officer of American Midstream, commented, “This transaction accelerates our transformation into a fully integrated gathering, processing and transmission company focused in select core areas. The transaction also furthers our strategy of redeploying capital into higher growth businesses along with divesting non-core assets at attractive multiples.”

“The addition of the Southcross assets allows us to capture the full midstream value chain in the very prolific Eagle Ford basin. The transaction represents a unique opportunity to expand our onshore gathering, processing and transmission services, linking supplies from the economically attractive Eagle Ford shale to high demand growth markets along the Gulf Coast.”

Southcross Holdings indirectly owns all of the equity interest in the general partner of SXE and indirectly owns gas pipeline, treating and fractionation facilities in the Eagle Ford Shale and elsewhere in South Texas. SXE is an integrated natural gas midstream services provider with assets primarily in the Eagle Ford as well as Mississippi and Alabama.

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