Kelso & Co., The Energy & Minerals Group, and Tallgrass KC, LLC’s $3.3 Billion Acquisition of TGE’s general partner

Baker Botts L.L.P. acted as legal advisor to Tallgrass. Citi acted as the financial advisor and Vinson & Elkins acted as the legal advisor to Blackstone on the transaction. Sidley Austin LLP acted as the legal advisor to GIC.

Tallgrass Energy, LP (NYSE: TGE) and Blackstone (NYSE: BX) today announced that affiliates of Blackstone Infrastructure Partners have entered into a definitive agreement with affiliates of Kelso & Co., The Energy & Minerals Group, and Tallgrass KC, LLC, an entity owned by certain members of TGE’s management, to acquire 100% of the membership interests in TGE’s general partner, as well as an approximately 44% economic interest in Tallgrass, for total cash consideration of approximately $3.3 billion. Affiliates of GIC, Singapore’s sovereign wealth fund, will be a minority investor in the transaction.

Closing of the transaction remains subject to customary closing conditions and is expected within the first quarter of 2019.

Vinson & Elkins acted as the legal advisor to Blackstone with a team including corporate partners Keith Fullenweider (Picture), Alan Beck and Lande Spottswood, with assistance from senior associates Crosby Scofield and Claire Campbell and associates Alex Robertson, Leslie Vaughn, Jonathan Sapp, Jane Ehinmoro and Kelly King. Also advising were finance partner David Wicklund and associates Caitlin Snelson and Derrik Sweeney; tax partners Ryan Carney, John Lynch and Gary Huffman, senior associate Allyson Seger and associate Sam Guthrie; executive compensation and benefits partner Stephen Jacobson and associates Gina Hancock and Mary Daniel Morgan; employment and labor partner Sean Becker and associate Robert Sheppard; regulatory counsel Damien Lyster and Suzanne Clevenger and associates Victoria Galvez and Tray Smith; environmental partner Larry Nettles, senior associate Matthew Dobbins and associate Jennifer Cornejo; real estate counsel Scot Dixon; and antitrust partner Neil Imus.

Baker Botts advised Tallgrass Energy Holdings, LLC with a team including Mollie Duckworth (Partner, Austin); Rachel Ratcliffe (Associate, Austin); Grace Matthews (Associate, Austin) (Corporate); Jon Nelsen (Partner, Austin); Michael Bresson (Partner, Houston) (Tax); Dan Tristan (Partner, Houston) (Finance) and Mark Bodron (Partner, Houston) (Employment).

Involved fees earner: Leslie Vaughn – Kirkland & Ellis; Alan Beck – Vinson & Elkins LLP; Sean Becker – Vinson & Elkins LLP; Ryan Carney – Vinson & Elkins LLP; Suzanne Clevenger – Vinson & Elkins LLP; Jane Ehinmoro – Vinson & Elkins LLP; Keith Fullenweider – Vinson & Elkins LLP; Victoria Galvez – Vinson & Elkins LLP; Sam Guthrie – Vinson & Elkins LLP; Gina Hancock – Vinson & Elkins LLP; Gary Huffman – Vinson & Elkins LLP; Stephen Jacobson – Vinson & Elkins LLP; Kelly King – Vinson & Elkins LLP; John Lynch – Vinson & Elkins LLP; Damien Lyster – Vinson & Elkins LLP; Mary Daniel Morgan – Vinson & Elkins LLP; Alex Robertson – Vinson & Elkins LLP; Jonathan Sapp – Vinson & Elkins LLP; Crosby Scofield – Vinson & Elkins LLP; Allyson Seger – Vinson & Elkins LLP; Robert Sheppard – Vinson & Elkins LLP; Claire Smyser Campbell – Vinson & Elkins LLP; Caitlin Snelson – Vinson & Elkins LLP; Lande Alexandra Spottswood – Vinson & Elkins LLP; Derrik Sweeney – Vinson & Elkins LLP; David Wicklund – Vinson & Elkins LLP;

Law Firms: Kirkland & Ellis; Vinson & Elkins LLP;

Clients: Blackstone;

Author: Ambrogio Visconti