TPG invests $500m in US natural gas company Valerus
US private equity firm TPG has taken a majority stake in Valerus Compression Services, a privately held provider of natural gas handling services. The $500m investment will be used to fund an expansion, and refinance the company’s existing debt, the company said.
Valerus also announced that Dan Smith is to become company chairman. Smith served as chairman, president and CEO of Lyondell Chemical Company until its acquisition by Basell in 2007, and is currently chairman of the board for Kraton Polymers. He is expected to join Valerus when the TPG transaction closes by the end of the year.
Michael MacDougall, a partner at TPG, said, “We firmly believe that Valerus is poised to benefit from the continued development of America’s natural gas resources and the growth in gas production from the country’s prolific shale plays. Valerus is also uniquely positioned to help its customers capitalise upon increased natural gas production internationally. We look forward to partnering with the management team to help it pursue the company’s next phase of growth.”
TPG recently announced plans to return $20m in fund fees to investors in its $19bn buy-out fund, citing a slow deal market for the move.
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Private Equity News» By News Type» Deal News
Private Equity News» By PE Sector» Buy-out
Private Equity News» By Region» North America» United States
Private Equity News» By News Type» Deal News
Private Equity News» By PE Sector» Buy-out
Private Equity News» By Region» North America» United States
