Macquarie Infrastructure Company LLC (“MIC”, “Company”) has completed its previously announced acquisition of 50% of the common stock of Loving Enterprises, Inc. (“Loving”). Loving is the ultimate parent of International-Matex Tank Terminals (“IMTT”). IMTT is the owner and operator of eight bulk liquid storage terminals in the U.S. and part owner of two terminals in Canada. IMTT is one of the largest companies in the bulk liquid storage terminal industry in the U.S., based on capacity.
The addition of IMTT to MIC’s U.S. businesses further strengthens and diversifies the Company’s sources of distributable cash. As a result of its investment in IMTT, MIC expects to receive a fixed dividend distribution of $7 million each quarter through the quarter ending December, 2007, and distributions based on IMTT’s cash flows thereafter.
The closing of IMTT, along with the expected closing of MIC’s pending acquisitions of The Gas Company (Hawaiian regulated utility) and Trajen Holdings, Inc. (an addition to MIC’s airport services business) is reflective of MIC’s market leading position as an owner/investor in infrastructure assets in the U.S.
“MIC’s proven ability to source and conclude attractive acquisitions and investments in the infrastructure space make MIC increasingly attractive to investors looking for exposure to the asset class, and to an investment supported by the strong, stable cash flows of infrastructure businesses”, said Peter Stokes, Chief Executive Officer of MIC. “IMTT is an excellent example of a high-quality, well-run infrastructure business and we’re pleased to have been able to acquire our interest in it.”