Kinder Morgan agrees to invest millions in Watco (12/16/2010)
12/16/2021Watco Cos. Inc. and Kinder Morgan Energy Partners L.P. recently reached an agreement under which Kinder Morgan will invest up to $150 million over the next year in Watco in exchange for a preferred equity position in the short-line holding company.
A North American pipeline transportation and energy storage company, and Watco customer, Kinder Morgan initially will invest $50 million upon closing, which is scheduled to occur in January. The transaction will provide Watco capital for further expansion and present Kinder Morgan growth opportunities through new projects, such as crude unit-train operations and incremental business at its terminal storage facilities, Kinder Morgan officials said in a prepared statement.
“We believe their reputation for providing safe, quality, value-creating terminal and storage services when combined with our rail service offerings will create many beneficial opportunities for both of our companies,” said Watco Chairman and Chief Executive Officer Rick Webb.
Watco owns and operates 22 short lines, 23 industrial contract switching locations, 14 car repair shops, four locomotive shops and 19 mobile mechanical shops. The company also manages 12 transload facilities, seven warehouses and one intermodal terminal.
Source: Progressive Railroading Daily News