HOUSTON, Jan 27, 2010 (BUSINESS WIRE) -- Kinder Morgan Energy Partners, L.P. (NYSE:KMP) today announced it has
signed a definitive purchase and sale agreement to acquire four
terminals from Slay Industries for approximately $98 million. The
facilities include a marine terminal in Sauget, Ill., a transload liquid
operation in Muscatine, Iowa, a liquid bulk terminal in St. Louis, Mo.,
and a warehousing distribution center in St. Louis. This acquisition,
which gives KMP a foothold into the strategic St. Louis terminal market,
complements the company's extensive terminal network by adding a diverse
mix of liquid and bulk capabilities. The terminals being purchased have
long-term contracts with large credit worthy shippers.
As part of the transaction, KMP and Slay Industries have entered into a
joint venture agreement at the Kellogg Dock coal bulk terminal, in
Modoc, Ill., and the newly created North Cahokia terminal in Sauget,
which has 175 acres to develop. All of the assets in Sauget have access
to the Mississippi River and five rail carriers.
"This acquisition, along with the joint venture we have entered into
with Slay, will give customers unparalleled access to major markets via
rail and waterway," said KMP Terminals President Jeff Armstrong. Upon
closing, the transaction is expected to be immediately accretive to cash
distributable to KMP unitholders.
Eugene P. Slay, Chairman and CEO of Slay Industries said, "We look
forward to a long term partnership with Kinder Morgan in developing the
joint ventures. Both companies share the same vision in realizing the
full potential of these strategic waterfront properties."
Slay Industries is a privately held, St. Louis-based group of diverse
transportation and distribution service companies. In addition to the
two new joint ventures, Slay Industries will continue to own and operate
Slay Transportation Co., Inc., S. I. Warehousing Co., Inc. and Archway
Fleeting and Harbor Service. Slay Transportation is a bulk truck carrier
that operates 1,500 tractors and trailers at 19 locations throughout
North America and is an American Chemistry Council Certified Partner
Member. S. I. Warehousing provides full service warehousing, automated
packaging, drumming and transload services to and from the Houston Ship
Channel. Archway Fleeting and Harbor Service provides various related
services on the inland waterways. For more information on Slay
Industries, please contact Glen Slay at (314) 647-7529 or visit www.slay.com.
Kinder Morgan Energy Partners, L.P. (NYSE:KMP) is a leading pipeline
transportation and energy storage company in North America. KMP owns an
interest in or operates more than 28,000 miles of pipelines and 180
terminals. Its pipelines transport natural gas, gasoline, crude oil, CO2
and other products, and its terminals store petroleum products and
chemicals and handle bulk materials like coal and petroleum coke. KMP is
also the leading provider of CO2 for enhanced oil recovery
projects in North America. One of the largest publicly traded pipeline
limited partnerships in America, KMP has an enterprise value of over $29
billion. The general partner of KMP is owned by Kinder Morgan, Inc., a
private company. For more information please visit www.kindermorgan.com.
This news release includes forward-looking statements. Although
Kinder Morgan believes that its expectations are based on reasonable
assumptions, it can give no assurance that such assumptions will
materialize.Important factors that could cause actual results to
differ materially from those in the forward-looking statements herein
are enumerated in Kinder Morgan's Forms 10-K and 10-Q as filed with the
Securities and Exchange Commission.
SOURCE: Kinder Morgan Energy Partners, L.P.
Kinder Morgan Energy Partners
Joe Hollier, 713-369-9176 (Media Relations)
Mindy Mills, 713-369-9490 (Investor Relations)
www.kindermorgan.com
or
Slay Industries
Glen Slay, 314-647-7529
