Colonial Enterprises Acquired by Brookfield Infrastructure for $9 Billion

Deal News | Apr 04, 2025 | Globenewswire

Colonial Enterprises Acquired by Brookfield Infrastructure for $9 Billion

Brookfield Infrastructure Partners L.P., along with its institutional partners, has announced a definitive agreement to acquire Colonial Enterprises, a leading midstream asset portfolio, including the Colonial Pipeline. The acquisition, valued at approximately $9 billion or 9x EBITDA, highlights Brookfield's ongoing strategy to bolster its infrastructure assets in strategic locations. With a vast network spanning 5,500 miles between Texas and New York, Colonial holds the title for the largest refined products system in the U.S. This acquisition is anticipated to provide stable and predictable cash flows due to Colonial's robust track record and high-quality customer base. Brookfield's individual equity contribution is set at $500 million, funded through recent capital recycling initiatives. Debt financing for this deal is led by Morgan Stanley and Mizuho Bank, with Jefferies, Greenhill & Co., and Morgan Stanley & Co. serving as financial advisors. The acquisition is slated for completion in the latter half of 2025, pending customary closing conditions.

Sectors

  • Infrastructure
  • Energy
  • Finance

Geography

  • United States – The Colonial Pipeline spans from Texas to New York, indicating that the operational and strategic significance of the acquisition lies primarily within the U.S.
  • Global – Brookfield Infrastructure operates globally, with diversified assets across the Americas, Asia Pacific, and Europe, impacting its international investment strategies.

Industry

  • Infrastructure – Brookfield Infrastructure's acquisition of Colonial Enterprises involves major infrastructure assets, specifically the Colonial Pipeline, a significant component of the U.S. energy distribution network.
  • Energy – Colonial Enterprises operates the Colonial Pipeline, a crucial part of the refined products system in the U.S., linking key regions from Texas to New York.
  • Finance – The acquisition involves significant financial investments and advisory roles from companies like Morgan Stanley, highlighting the critical financial sector support in the deal.

Financials

  • 9 billion – Enterprise value for the acquisition of Colonial Enterprises by Brookfield Infrastructure.
  • 500 million – Brookfield Infrastructure's expected equity investment in the acquisition.
  • 9x – EBITDA multiple for the acquisition.

Participants

NameRoleTypeDescription
Brookfield Infrastructure Partners L.P.AcquirerCompanyA leading global infrastructure company involved in the acquisition of Colonial Enterprises.
Colonial EnterprisesTarget CompanyCompanyThe owner of the Colonial Pipeline, the largest refined products system in the U.S.
Morgan Stanley Senior Funding, Inc.Debt Financing LeaderCompanyLed the debt financing for the acquisition, acting as the sole bookrunner on the term loan facility.
Mizuho Bank, Ltd.Debt Financing LeaderCompanyAlongside Morgan Stanley, provided debt financing for the acquisition.
Jefferies LLCFinancial AdvisorCompanyEngaged as a joint financial advisor for the acquisition.
Greenhill & Co. LLCFinancial AdvisorCompanyProvided financial advisory services to Brookfield Infrastructure.
Kirkland & Ellis LLPLegal AdvisorCompanyServed as legal advisor for the acquisition deal.