This acquisition, which gives KMP a foothold into the strategic St Louis terminal market, complements the company’s terminal network by adding a mix of liquid and bulk capabilities. The terminals being purchased have long-term contracts with credit worthy shippers, the company said.
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, Illinois, 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.
Jeff Armstrong, president of KMP Terminals, said: “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. Upon closing, the transaction is expected to be immediately accretive to cash distributable to KMP unitholders.”
Eugene Slay, chairman and CEO of Slay Industries, said: “We look forward to a long term partnership with Kinder Morgan in developing the joint ventures. Both companies share the same vision in realizing the full potential of these strategic waterfront properties.”
