Enbridge Inc. (TSX:ENB) entered into a definitive agreement to acquire Moda Ingleside Energy Center and Other Assets from Moda Midstream, LLC for an enterprise value of $3 billion on September 7, 2021. The consideration is net of working capital and cash, debt free and is subject to closing adjustments. The transaction will be initially funded with existing liquidity and internally generated equity. As part of the agreement, Enbridge will acquire a 100% operating interest in the Moda Ingleside Energy Center. Post completion, Moda Ingleside Energy will be renamed as Enbridge Ingleside Energy Center. Enbridge will also acquire a 20% interest in the 670-thousand-barrel per day Cactus II Pipeline, a 100% operating interest in the 300-thousand-barrel per day Viola pipeline, and a 100% operating interest in the 350-thousand-barrel Taft Terminal. Modas Ingleside Management and key Moda marine terminal personnel will remain in place following closing of the transaction, ensuring continuity of operations and ongoing development activities. At closing, Moda Midstream Executive Vice President, Chief Operating Officer and Founder Javier del Olmo will join Enbridge as Vice President, USGC Terminaling Operations. Key Moda Midstream personnel and the entire Moda Ingleside Energy team will join Javier del Olmo at Enbridge as the core of the new USGC Terminaling team in Enbridges Liquids Pipelines business unit. Moda Midstream President, Chief Executive Officer and Founder Bo McCall will become Chairman of Moda Midstream, and current Executive Vice President, Chief Financial Officer and Founder Jonathan Ackerman will serve as President and Chief Executive Officer. Ian Levine, Modas current Vice President of Corporate Strategy and Treasurer will become Vice President, Strategy and Chief Executive Officer.
The transaction is subject to customary regulatory approvals, antitrust approval and closing conditions. The transaction has been approved by the Board of Directors of both Enbridge and Moda Midstream. The transaction is expected to close by the end of 2021. The acquired assets are expected to be immediately and strongly accretive to distributable cash flow per share and earnings per share. Credit Suisse Securities (USA) LLC acted as financial advisor and Alan Beck, Matt Falcone, Ryan Carney, Shane Tucker, Sean Becker, David Wicklund, Devika Kornbacher, Darren Tucker, Christopher Popov and Michael Ward of Vinson & Elkins LLP acted as legal advisor to Moda Midstream. Barclays acted as financial advisor and Cliff W. Vrielink and Atman Shukla of Sidley Austin LLP acted as legal advisor to Enbridge. Shearman & Sterling acted as legal advisor to Flatrock Energy, financial sponsor of Moda Midstream. Sarah Mclean, Doug Goldstein, Todd Lowther and Julia Pashin of Shearman & Sterling LLP advised Enbridge Inc.
Enbridge Inc. (TSX:ENB) completed the acquisition of Moda Ingleside Energy Center and Other Assets from Moda Midstream, LLC on October 12, 2021.