“American Midstream Partners (AMID), JP Energy Partners (JPEP) Enter ~$2B Merger Agreement”
American Midstream Partners, LP (NYSE: AMID) and JP Energy Partners LP (NYSE: JPEP) announced their execution of a merger agreement to create a combined midstream platform. American Midstream will acquire 100% of JP Energy in a unit-for-unit merger which is anticipated to have minimal, if any, tax recognition for the unitholders. In conjunction with the transaction, ArcLight Capital Partners, LLC (“ArcLight”), the sponsor of both American Midstream and JP Energy, will combine the general partners of the two companies. Upon closing, the combined entity is expected to generate pro-forma Adjusted EBITDA of approximately $185 million, assuming 2016 mid-point guidance from each respective company and including run-rate synergies of approximately $10 million.
Thompson & Knight LLP acted as legal counsel to the Conflicts Committee of American Midstream.