PetroLogistics LP (NYSE: PDH) announced May 28 it agreed to be acquired by Flint Hills Resources LLC, a subsidiary of Koch Industries Inc., for $2.1 billion including debt.

Under the terms of the acquisition agreement, Flint Hills will acquire all of PetroLogistics' outstanding common units for $14 per common unit in cash, except for those common units owned by Lindsay Goldberg LLC, York Capital Management, PetroLogistics' executive chairman and its president and CEO, which will be acquired for $12 per common unit in cash. Flint Hills will also acquire all of the membership interests in its general partner, PetroLogistics GP LLC, for no additional consideration.

PetroLogistics is a master limited partnership with headquarters located in Houston. It is a major producer of propylene with operations in the vicinity of the Houston Ship Channel.

"PetroLogistics built this facility from the ground up. It is a world-class operation," Brad Razook, Flint Hills president and CEO, said in a May 28 release. "Its capabilities are well aligned with our existing chemical and refining business."

Goldman Sachs & Co. is financial advisor and Jones Day is legal advisor to Flint Hills. Morgan Stanley & Co. LLC and Evercore Partners are financial advisors to PetroLogistics and have delivered fairness opinions, and Weil, Gotshal & Manges LLP and Vinson & Elkins LLP are legal advisors to PetroLogistics.

The closing of the transaction is expected to occur before the end of the year.

Based in The Woodlands, Texas, Flint Hills is a leading refining, chemicals and biofuels company with operations primarily in Texas and the Midwest.