Macquarie Capital’s principal investment arm has acquired a majority stake in a US power and utility infrastructure platform.

Macquarie Capital Principal Finance has paid an undisclosed sum to buy the stake in Multifuels Midstream from Warren Equity Partners and Multifuels, the companies said in a joint statement.

Multifuels Midstream – formed by Warren Equity and Multifuels in January 2016 in partnership with management – is focused on lateral natural gas pipelines and related assets in the US.

Its more than 150 miles of owned and operated pipelines transport natural gas to 18 utility service areas across central Texas.

James Fincher, managing director at Macquarie, said: “Multifuels Midstream occupies a critical space in power and utility infrastructure services and has a demonstrated track record and excellent reputation with its customers and regulators.

“This track record and proven engineering ability create significant competitive advantages in what we believe is an attractive and underserved market segment and combined with continued strong demand for natural gas and ageing US pipelines, provide Multifuels Midstream with meaningful growth opportunities.”

Richard Robinson, CEO of Multifuels Midstream, said: “We are proud of the unique technical, structuring and financing expertise we’ve built in lateral natural gas pipelines and related infrastructure and are thrilled to partner with a global leader like Macquarie Capital, whose expertise and experience will be instrumental to our next phase of growth.

“With Macquarie’s support, we intend to continue growing our platform, helping our customers solve their critical infrastructure challenges while providing value through fully-financed solutions.”

Randy Gibbs, Multifuels founder and president, said: “Warren Equity has been an outstanding partner, providing financial and strategic support to help us achieve our growth initiatives.”

Steven Wacaster, Warren Equity managing partner, said: “Multifuels Midstream is an excellent example of our focus on building great companies that provide mission-critical solutions to the infrastructure market.”

Topics