US-based Crestwood Holdings has acquired Inergy for $80m in cash, as part of a previously announced agreement worth approximately $7bn.
As part of the deal, Crestwood Gas Services Holdings will acquire incentive distribution rights of Crestwood Midstream Partners for common units and subordinated units in Inergy.
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The unification of Crestwood and Inergy will create a fully integrated midstream that will link new shale-based energy supplies with growing energy demand around the midstream value chain.
The company is expected to provide a broad-range of services in the premier shale plays of North America, such as Marcellus Shale, Bakken Shale, Eagle Ford Shale, Permian Basin, Powder River Basin, and Niobrara Shale.
It will also provide services to Utica Shale, Barnett Shale, Fayetteville Shale, Granite Wash, Haynesville Shale, and Monterey Shale.
Crestwood Midstream chairman, president and CEO, Robert G Phillips, said that the acquisition of Inergy allows for the creation of a fully integrated midstream partnership to compete for the largest midstream infrastructure projects.
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By GlobalData"Together, we will be able to capitalise on new growth opportunities stemming from our ability to offer a more comprehensive and competitive suite of customer services that expand margins and enhance returns on investment," he said.
"With the general partners now consolidated, prior to the merger we will be focusing on an efficient integration of our assets and organisations to leverage our diverse midstream operating platform by providing ‘best-in-class’ customer services in the premier shale plays across North America."
The merger of Crestwood Midstream with Inergy Midstream is expected to be completed in the third quarter of 2013.
