Macquarie Capital Principal Finance and Warren Equity Partners April 30 announced that Macquarie has acquired a majority stake in Multifuels Midstream Group LLC, a differentiated power and utility infrastructure platform focused on lateral natural gas pipelines and related assets in the U.S., supporting its customers by providing safe, reliable and cost-effective solutions to rebuild or replace their aging assets. Macquarie acquired the majority stake from Warren Equity, a lower middle market private equity fund, and Multifuels LP.
Multifuels Midstream serves utilities, power generators and large commercial and industrial customers and is one of a limited number of companies focused on “demand-pull” lateral natural gas pipelines. Its more than 150 miles of owned and operated pipelines transport natural gas to 18 utility service areas across Central Texas. The Multifuels Midstream management team brings decades of technical, structuring and financing expertise to help customers solve their critical challenges in supplying gas to residential and commercial markets, including upgrading and rebuilding their aging critical infrastructure at no upfront cost.
Macquarie intends to actively support Multifuels Midstream’s continued development and redevelopment of customers’ critical gas infrastructure, allowing it to provide fully financed solutions to new and existing customers.
“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” said Richard Robinson, CEO of Multifuels Midstream. “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.”
“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,” said James Fincher, managing director at Macquarie. “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 aging U.S. pipelines, provide Multifuels Midstream with meaningful growth opportunities.”
Multifuels Midstream was formed by Warren Equity and Multifuels LP in January 2016 in partnership with management. “Warren Equity has been an outstanding partner, providing financial and strategic support to help us achieve our growth initiatives,” said Multifuels LP Founder and President Randy Gibbs. Warren Equity Managing Partner Steven Wacaster said, “Multifuels Midstream is an excellent example of our focus on building great companies that provide mission critical solutions to the infrastructure market. We are very proud of what we accomplished over the past four years with the Multifuels team.”
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