Latham, Kirkland Get Work on $5B Acquisition of Energy Transport Co.
Deal teams led by Houston partners are handling the unit and cash deal between Energy Transfer LP and SemGroup Corp.
September 16, 2019 at 11:10 AM
2 minute read
The original version of this story was published on Texas Lawyer
Latham & Watkins is representing Energy Transfer LP in the Dallas master limited partnership's pending $5 billion acquisition of Tulsa-based energy transport company SemGroup Corp., which turned to Kirkland & Ellis for the transaction.
Both deal teams are led by Houston lawyers.
The deal announcement Monday comes as the country's energy supplies are top of mind, in the wake of a drone attack over the weekend on a major oil field and processing plant in Saudi Arabia. That supply disruption led to oil trading on Monday morning at about $60 a barrel, up about 10 percent compared with the price before the attack.
Energy Transfer announced in a press release Monday that it has entered into a definitive merger agreement for the unit and cash transaction, valued at about $5 billion including assumption of debt. The transaction is expected to close in late 2019 or early 2020 pending approval from SemGroup's stockholders and other customary regulatory approvals.
The acquisition significantly expands Energy Transfer's reach in the Gulf Coast, western Canada and the U.S. mid-continent region through the addition of SemGroup's pipeline, processing plants, storage capacity at refineries and deep-water marine terminals.
Latham's deal team for Energy Transfer is led by Houston corporate partners Bill Finnegan and Debbie Yee. Other Houston lawyers assisting them are tax partners Tim Fenn and Bryant Lee, environmental partner Joel Mack and finance partner Pamela Kellet. Also, in Washington, D.C., benefits and compensation partner Adam Kestenbaum, and antitrust partners Michael Egge and Jason Cruise, are on the team.
SemGroup is relying on a deal team at Kirkland led by Houston corporate partners Sean Wheeler and Doug Bacon, along with New York executive compensation partner Scott Price, and Houston tax partner Mark Dundon.
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