The all-cash transaction has an enterprise value of $10.3 billion and a $6.5 billion equity value. The acquisition price represents a 27.5% premium over the stock's closing price on Thursday of $32.55.
Buckeye owns a network of integrated midstream energy assets, including 6,000 miles of pipeline with over 100 delivery locations and an aggregate tank capacity of over 118 million barrels.
This acquisition is aligned with IFM's focus on investing in high quality, essential infrastructure assets that underpin the economies in which they operate," said Julio Garcia, head of infrastructure, North America of IFM.
"We are pleased to have the opportunity to bring the Buckeye business and management team under the IFM umbrella," said Jamie Cemm, executive director of IFM. "The proposed acquisition of Buckeye is a complementary addition to IFM's substantial investments in energy infrastructure across North America and globally. We look forward to supporting the continuing growth of the business."
Buckeye Partners traded at $41.75, up 28.2%.