America’s largest refined products pipeline, Colonial Pipeline, is reaching the final stages of acquisition talks. The company is gearing up for a $9 billion buyout, including debt, from Brookfield Asset Management, Reuters reported.
According to the report, Brookfield won the auction process, which has been ongoing for several months. The five owners of Colonial Pipeline — Koch, KKR, Shell, IFM and CDPQ — kept the process under wraps as the deliberations were confidential.
Of the owners, Koch has the most stake in the company at 23.4%, followed by KKR at 23.4%, Shell at 16.13%, IFM at 15.8% and CDPQ, which entered the business in 2012 through an $850 million deal with ConocoPhillips, according to Private Equity Wire.
Colonial Pipeline delivers more than 100 million gallons of fuel every day on a system stretching from Houston to the New York Harbor, according to its website.
Bloomberg first reported in March that Brookfield was emerging as the frontrunner in the bid race. Colonial has been considering its options, including a potential sale, since October 2024.
Colonial Pipeline was founded in 1962 by nine major petroleum refiners who came together to create a Gulf Coast to East Coast pipeline company. Originally named Suwannee Pipeline Co., the company progressed to moving 10 million gallons per day by just 1963.
Colonial has grown significantly over the past six decades, which the company attributes to its ability to adapt to new trends and technologies.
“Innovation has powered us since the early days. We were the first in our industry to generate schedules from digital computers and ever since, technology has made us safer, smarter, and more efficient,” the company’s website reads. “From moving 10 million gallons per day in 1963 to more than 100 million gallons per day today, we’ve continued to grow, expand, and diversify our business.”
Reuters sources confirmed that the owners could officially announce a deal in the coming weeks.
