IFM Investors completes $10b acquisition of US Buckeye Partners

INDUSTRY super fund owned IFM Investors completed the purchase of US energy company Buckeye Partners, over this weekend, Australian-time.  It is the largest Australian cross border acquisition of a foreign company since BHP acquired Petrohawk in 2011 and the largest deal in the history of IFM, catapulting it to being one of the most significant owners of infrastructure in the world.

Six million working Australians who are members of industry superannuation funds and whose retirement savings are part-managed by IFM Investors will benefit from the transaction.

Buckeye’s critical energy infrastructure assets include 6,000 miles of pipeline, with over 100 delivery locations and 115 liquid petroleum products terminals with aggregate tank capacity of over 118 million barrels, and a network of marine terminals located primarily in the East and Gulf Coast regions of the US, as well as in the Caribbean.

IFM Investors chief executive Brett Himbury said the Buckeye deal was a strong long-term investment for millions of industry super fund members and a transformational acquisition for the firm.

“With our scale, reach and capability, IFM Investors and industry super funds are a significant exporter of capital. As long term stewards of critical infrastructure, IFM seeks to deliver great investment outcomes in a sustained and sustainable way for millions of working people here and around the world.”

Mr Himbury said that IFM would actively lower carbon emissions at Buckeye to assist the firm navigate the next phase of the US and global energy revolution, and protect the value of the investment in the long term.

“In our experience, working to lower emissions is good for business and good for our investors," Mr Himbury said.

“As the largest owners of infrastructure in Australia, IFM has significant expertise now in responsible stewardship and we look forward to contributing more investment in infrastructure in Australia.

"Our priority is delivering great returns to members. We also know that long-term investment in infrastructure builds the productive capacity of the nation and generates employment. We are committed to meeting community standards as investors in infrastructure the public relies upon and continuing to partner with federal and state governments.”

About IFM Investors

IFM Investors is an investor-owned global fund manager with A$152 billion under management as of 30 September 2019. Established more than 20 years ago and owned by 27 major pension funds, IFM Investors’ interests are deeply aligned with those of its investors. Investment teams in Europe, North America, Australia and Asia manage institutional strategies across infrastructure (equity and debt), debt investments, listed equities and private capital. IFM Investors is committed to the United Nations supported Principles for Responsible Investment and has been a signatory since 2008. IFM Investors has offices in nine locations; Melbourne, Sydney, New York, London, Berlin, Tokyo, Hong Kong, Seoul and Zurich. For more information please visit www.ifminvestors.com

 

ends