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News > Deals
Kinder pipes into GATX
November 30, 2000: 5:51 p.m. ET

Kinder Morgan pays just over $1B for GATX U.S. pipeline and terminal biz
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NEW YORK (CNNfn) - Kinder Morgan Energy Partners agreed Thursday to buy GATX Corp.'s U.S. pipeline and terminal business for slightly more than $1 billion in cash.

The deal will make Kinder Morgan the No. 2 independent petroleum storage operator in the country. Kinder Morgan Partners (KMP: Research, Estimates) will also assume about $150 million in debt.

"This is a terrific acquisition of premier, fee-based businesses that have significant cost synergies with our existing operations and outstanding growth prospects," said Richard D. Kinder, chairman and CEO of Kinder Morgan Partners, in a statement.

graphicKinder said he expects the deal to immediately add to earnings by 10 to 15 cents per share annually. He also said the deal would add to earnings for Kinder Morgan Inc. (KMI: Research, Estimates), which operates Kinder Morgan Energy Partners through a general partner interest, by 15-to-20 cents per share annually.

In the deal, Kinder Morgan Partners will get control of the CALNEV Pipe Line Co., which operates a 550-mile refined petroleum products pipeline system beginning in California and ending in Las Vegas, and the Central Florida Pipeline Co., which operates a 95-mile system between the Florida cities of Tampa and Orlando.

The Houston-based company also acquires 12 terminals from GATX.

Shares of Kinder Morgan Partners fell 75 cents to $46 on the New York Stock Exchange Thursday. Kinder Morgan Inc. dropped $1.75 to $41.44. graphic

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.