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Acquisition of Buckeye Partners completed

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World Pipelines,

IFM Investors Pty Ltd (IFM) and Buckeye Partners, L.P. (Buckeye) have announced the completion of the acquisition of Buckeye by entities affiliated with IFM, adding one of the largest diversified networks of integrated midstream assets to IFM’s substantial investments in energy infrastructure across North America.

Buckeye’s assets include 6000 miles of pipeline, with over 100 delivery locations and 115 liquid petroleum products terminals with aggregate tank capacity of over 118 million bbls, and a network of marine terminals located primarily in the East and Gulf Coast regions of the US, as well as in the Caribbean.

The acquisition is aligned with IFM’s focus on investing in high-quality, essential infrastructure assets that underpin the economies in which they operate.

“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, Executive Director for IFM. “Buckeye is a great company with a rich history, and we look forward to steering the team and company through the next phase of the US and global energy evolution.”

“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.”

Transaction details

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

Under the terms of the merger agreement, a wholly owned subsidiary of the IFM Global Infrastructure Fund (the ‘Fund’) advised by IFM merged with and into Buckeye (the ‘merger’), 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 US$41.50 per limited partnership unit. The all-cash transaction is valued at US$10.3 billion enterprise value and US$6.5 billion equity value.

In connection with the closing of the transaction, effective 1 November 2019, trading of the Buckeye limited partnership units has been suspended on the New York Stock Exchange (NYSE), and Buckeye has requested that its limited partnership units be delisted from the NYSE.

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