Brookfield Infrastructure Partners L.P. and its institutional partners have entered into a definitive agreement to acquire Colonial Enterprises, a leading midstream asset portfolio that includes the Colonial Pipeline, for an enterprise value of approximately $9 billion. The acquisition represents a valuation of nine times EBITDA.
Colonial operates the largest refined products pipeline system in the United States, spanning approximately 5,500 miles from Texas to New York. With a multi-decade history of strong performance and high utilization, the system serves a high-quality customer base along the U.S. East Coast.
Transaction Details
At closing, BIP’s equity investment is expected to total $500 million, representing around 15 percent of the total equity investment. The investment will be fully funded through proceeds from Brookfield Infrastructure’s recently announced capital recycling initiatives.
Debt financing for the acquisition is being led by Morgan Stanley Senior Funding, Inc. and Mizuho Bank, Ltd., with Morgan Stanley Senior Funding, Inc. acting as the sole bookrunner for the term loan facility. Brookfield Infrastructure has engaged Jefferies LLC, Greenhill & Co. LLC, an affiliate of Mizuho, and Morgan Stanley & Co. LLC as joint financial advisors. Legal advisory services are being provided by Kirkland & Ellis LLP.
The transaction is expected to close in the second half of 2025, subject to customary closing conditions.
For more information visit www.bip.brookfield.com
