Kinder Morgan Energy Partners has agreed to purchase 100% of Copano Energy .
The deal, if approved by regulators and Copano shareholders, would result in Copano shareholders receiving 0.4563 shares of Kinder Morgan for each share of Copano stock. At the time of the announcement, the transaction is valued at $5 billion, a 23.5% premium to Copano Energy's closing price on Jan. 29.
Copano owns or operates approximately 6,900 miles of pipelines and nine processing plants, primarily located in Wyoming, Texas, and Oklahoma. Copano's assets will be combined with Kinder Morgan's interest or ownership in approximately 46,000 miles of pipelines and 180 terminals.
According to Kinder Morgan CEO Richard Kinder, the transaction will allow his company to "significantly expand our midstream services footprint." The transaction is expected to be only modestly accretive to Kinder Morgan in 2013, and add approximately $0.10 per unit for at least the next five years.
The article Kinder Morgan Energy Partners to Buy Copano Energy in $5 Billion Deal originally appeared on Fool.com.Fool contributor Tim Brugger has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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