NEW YORK CITY—Macquarie Infrastructure Co. said Monday that it had agreed to buy the 50% of International-Matex Tank Terminals that it didn’t already own. MIC will purchase the remainder interest from members of the Coleman family, which founded the New Orleans-based owner/operator of bulk liquid storage facilities across North America, for $910 million in cash and $115 million in stock.
MIC says the deal implies an enterprise value of 10.7 times trailing EV/EBITDA for IMTT. CEO James Hooke says that 100% ownership of IMTT “will deliver dividend growth for shareholders of MIC and further enhance our ability to drive operational improvement and growth investments at IMTT. In addition, we expect the acquisition will fortify MIC’s stable, largely contracted revenue based business model.” He adds that MIC expects to deploy growth capital across IMTT’s operations.
As part of the deal, current IMTT CEO Thomas Coleman is expected to retire, with Hooke replacing him as interim CEO. IMTT chairman James Coleman and its head of government relations, James O. Coleman, are also expected to step down.
The acquisition isn’t expected to close before late July at the earliest; MIC acquired its initial 50% stake in IMTT in 2006 and has operated it as a subsidiary since then. IMTT’s EBITDA has increased from approximately $67 million in 2005 to $279.6 million for the trailing 12-month period ended March 31, 2014.
Founded in 1939, IMTT serves the energy and chemical industries. Its 12 marine terminals are located in Bayonne, NJ; St. Rose, Avondale, Gretna and Geismar, LA; Chesapeake and Richmond, VA; Lemont and Joliet, IL; Richmond, CA; and Quebec City and Placentia Bay, Canada. In addition to the terminal operations, IMTT also offers environmental services through its affiliate, OMI Environmental Solutions, which consist of providing spill remediation, tank and pipeline cleaning and other marine and industrial services to IMTT’s terminals as well as to third-party customers.