Kinder Morgan Energy Partners, L.P. (KMP) on Jan. 27 announced the signing of a definitive purchase and sale 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. The company said the terminals being purchased have long-term contracts with large, credit-worthy shippers.
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. 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.
Eugene P. 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."
The arrangement follows a similar move that KMP announced last week, which involved U.S. Development Group.