Kinder Morgan Energy Partners, L.P. announced Jan. 27 that it has signed an agreement to acquire four terminals from Slay Industries for approximately $98 million.
The facilities include a marine terminal in Sauget, Ill., a transload liquid operation in Muscatine, Iowa, a liquid bulk terminal in St. Louis, Mo., and a warehousing distribution center in St. Louis. KMP reports that it made the acquisition as a strategic foothold into the St. Louis terminal market, complementing the company’s terminal network by adding a diverse mix of liquid and bulk capabilities.
As part of the transaction, KMP and Slay Industries have entered into a joint venture agreement at the Kellogg Dock coal bulk terminal, in Modoc, Ill., and the newly created North Cahokia terminal in Sauget, which has 175 acres to develop. All of the assets in Sauget have access to the Mississippi River and five rail carriers.
“This acquisition, along with the joint venture we have entered into with Slay, will give customers unparalleled access to major markets via rail and waterway,” said KMP Terminals President Jeff Armstrong. Upon closing, the transaction is expected to be immediately accretive to cash distributable to KMP unitholders.