OVERLAND PARK, Kan — Tallgrass Energy Partners, LP has announced that it has closed the previously announced transaction buy Kinder Morgan Interstate Gas Transmission (KMIGT), Trailblazer Pipeline Company, the Casper-Douglas natural gas processing and West Frenchie Draw treating facilities in Wyoming, and a 50 percent interest in the Rockies Express Pipeline (REX) from Kinder Morgan Energy Partners, L.P.
Tallgrass acquired these assets for a total cash consideration of approximately $1.8 billion. Including the proportionate amount of REX debt, the purchase price is equivalent to a value of $3.3 billion.
Tallgrass is owned by the management team of Tallgrass, Kelso & Company, and a limited group of investors led by The Energy & Minerals Group including Magnetar Capital.
"We look forward to working with a talented group of employees that are continuing with us from KMP," said Tallgrass CEO David G. Dehaemers, Jr. "We also look forward to a great working relationship with our equity partners, The Energy & Minerals Group and Kelso & Company. They have been very supportive throughout this purchase process and added tremendous value." The Energy & Minerals Group
is the management company for a series of highly specialized private equity funds with total investor commitments of approximately $5.0 billion. Since inception in 2006, EMG has invested in 9 midstream energy transactions comprising approximately $2.6 billion of equity capital.
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