Inergy Midstream LP is a pipeline partnership that was traded publicly a year and a half ago. It has just announced its agreement to purchase Crestwood Midstream Partners LP for stock and cash totalling US$1.25 billion. This acquisition adds to the natural gas processing capacity of Inergy as it rides the crest of rising output in the United States.
For each Crestwood Midstream share, holders would receive 1.07 Inergy Mistream units. There will also be a one time cash payment amounting to US$35 million, as confirmed by the two parties. The cash portion would not pay for units currently held by Crestwood Holdings LLC.
According to data compiled by Bloomberg, the deal provides for a 14% premium to the closing value of the stock for Crestwood last May 3. Furthermore, Inergy unit holders would own 56.4% ofr the new company, while Crestwood Holdings would hold 29% while Inergy management would hold 14.6%.
Crestwood Chairman and CEO Robert G. Phillips would run the company from its Houston offices, overseeing Inergy operation located in Kansas City, Missouri.
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