September 12, 2008
DCP Midstream to Acquire Michigan Pipeline & Processing
DCP Midstream Partners has signed an agreement to purchase Michigan Pipeline & Processing, a privately held company engaged in natural gas gathering and treating services for natural gas produced from the Antrim Shale of northern Michigan and natural gas transportation within Michigan. The sellers are two privately held companies.
Under the terms of the acquisition, the partnership will pay a purchase price of $145 million, subject to certain customary post-closing purchase price adjustments, plus up to an additional $15 million to the sellers depending on the earnings of the assets after a three-year period. The partnership intends to pay for the acquisition with debt under its existing credit facility. The acquisition is expected to close in October 2008.