Shell Midstream Operating, a subsidiary of Shell, has completed the previously announced sale of its 16.125% interest in Colonial Enterprises to Colossus AcquireCo LLC, a wholly-owned subsidiary of Brookfield Infrastructure Partners and its institutional partners. The divestment reflects Shell’s focus on performance, discipline and simplification and enables the company to concentrate on areas where it has scale and competitive advantage.
Together with Shell, the co-owners of Colonial Enterprises have sold 100% of their Colonial shares to Brookfield. Colonial was previously divided among five partners: Shell Midstream Operating LLC (16.125%), Koch Capital Investments Company, LLC (28.088%); KKR-Keats Pipeline Investors, L.P. (23.443%); La Caisse (16.549%); and IFM Investors (IFM) (15.795%). The sale values Shell’s share of Colonial at $1.45 billion, inclusive of approximately $500 million in non-recourse debt and excluding customary closing adjustments.
Colonial operates as an independent company and fully owns Colonial Pipeline Company (CPC), a non-operated venture, as well as Colonial Marketing Company. CPC provides oil products transportation services from the US Gulf Coast to the US Atlantic Seaboard.
