Kinetrex Energy Acquired in $310M Deal
(photo courtesy of Kinetrex Energy)
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As a subscriber you can listen to articles at work, in the car, or while you work out. Subscribe NowIndianapolis-based Kinetrex Energy has been acquired by Kinder Morgan Inc. (NYSE: KMI), a Texas-based energy infrastructure company that owns and operates oil and gas pipelines and terminals. The deal is valued at $310 million and includes two liquefied natural gas production facilities, a 50% stake in a landfill renewable natural gas facility and three future landfill RNG plants.
Kinetrex, which is owned Parallel49 Equity, a private equity firm based in Illinois, is considered a leading supplier of LNG in the Midwest and has been growing its presence in the RNG sector. RNG is generated from decomposing organic waste at landfills.
“KMI’s project management expertise, extensive pipeline network and broad customer relationships will undoubtedly help us realize the vision we had in founding Kinetrex eight years ago: to provide holistic solutions for customers seeking to meet emission reduction targets,” said Kinetrex President and Chief Executive Officer Aaron Johnson.
The deal still faces regulatory approval, but the companies expect to close in the third quarter of 2021.