Middle market and growth equity platform TPG Growth has signed an agreement to acquire US-based natural gas processing services provider Discovery Midstream.
TPG Growth is a subsidiary of alternative asset firm TPG.
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Discovery provides services in the southern portion of the Denver-Julesburg Basin in Colorado. Upon completion of the transaction, its existing management team will continue to run the company.
Additional terms of the transaction including financial details were not disclosed.
TPG partner Christopher Ortega said: “In partnering with Discovery, we are backing a strong and experienced management team that is building a cost-effective, full-service, high-quality midstream platform in one of the most attractive basins in the US.”
With assets in Weld and Adams counties, Discovery is currently constructing more than 120 miles of pipeline and a 60Mmcf/d natural gas processing plant, which is scheduled to become operational in the third quarter of this year.
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By GlobalDataIt also plans to expand the plant capacity to 260Mmcf/d next year.
Discovery Midstream partner Drew Chambers said: “In partnering with TPG, we are exceptionally well-positioned to continue serving our existing customers and look forward to expanding our system in this next phase of growth.
“TPG’s strong network of industry relationships, strategic vision, and experience building businesses of scale in the oil and gas space make them an ideal partner to help us capitalise on the exciting growth opportunities that lie ahead.”
The transaction is slated for closure in the third quarter of this year.
