Macquarie Infrastructure Co. (MIC), a U.S. owner of storage terminals for oil products and chemicals, agreed to buy the 50 percent of International-Matex Tank Terminals it doesn’t already own for $1.03 billion in cash and stock.
Macquarie Infrastructure, part of Australia’s Macquarie Group Ltd., will purchase the stake from the founding family, the New York-based company said in a statement today. Members of the Coleman family will step down from roles as chairman, chief executive officer and head of government relations for the company.
The accord comes after years of disagreement and arbitration between Macquarie and other investors, including members of the Coleman family, according to U.S. regulatory filings. Macquarie Infrastructure bought its initial 50 percent stake in the company in May 2006.
“We believe the acquisition will deliver dividend growth for shareholders of MIC and further enhance our ability to drive operational improvement and growth investments,” James Hooke, CEO of Macquarie Infrastructure, said in the statement.
The company’s board authorized increasing its quarterly cash dividend. The dividend payable for the second quarter will be 95 cents a share, up 1.3 percent from the prior quarter. The dividend will be payable on Aug. 14 to shareholders on record on Aug. 11.
Macquarie Infrastructure said it will buy the remaining stake for $910 million in cash and $115 million in stock.
After the deal, International-Matex Tank Terminals will become the largest business division within Macquarie, which has a market value of $3.5 billion. The company said it doesn’t expect the transaction to close before late July.
International-Matex Tank Terminals owns and operates 12 bulk liquid storage terminals in North America, with a capacity of 42 million barrels, including marine terminals on the U.S. east, west and Gulf coasts, according to a company website.
Macquarie’s earnings before interest, taxes, depreciation and amortization, or Ebitda, from International-Matex Tank Terminals has more than tripled to $279.6 million for the 12 months through March 31, the company said in a statement. Macquarie’s 50 percent stake in the business contributed $39.7 million to Macquarie’s first quarter Ebitda, according to the company’s earnings report April 30.
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