Alinda acquires 59% stake in Howard Energy

The US infra investment firm has acquired a majority stake in the San Antonio midstream energy company for an undisclosed amount.

Alinda Capital Partners (Alinda) has acquired 59 percent of Howard Energy Partners (HEP) from a number of shareholders, the San Antonio, Texas-based midstream energy company said in a statement on Monday.

Alinda has built up a majority stake in HEP by acquiring the ownership previously held by Quanta Capital Solutions, GE Energy Financial Services, Clear Springs Energy, and other minority interest holders. The firm did not disclose the financial terms of the purchases.

In a separate statement, Quanta Capital Solutions, a wholly-owned subsidiary of Quanta Services, said it sold its equity ownership interest in Howard for approximately $221 million in cash. Alinda did not specify what portion of the 59 percent of its acquisition was represented by Quanta.

Quanta said it would use the proceeds of the transaction, estimated at $175 million after tax, “to support its ongoing strategic growth and other corporate initiatives, including acquisitions and similar investments,” according to the release it issued on Monday.

“We are delighted to be entering into a partnership with Howard Energy Partners management team and Crosstex [Energy],” Alinda’s managing partner Chris Beale said, referring to the owner of the remaining 31 percent of HEP.

“In a very short time, HEP has built an impressive base of midstream assets supporting energy producers in South Texas,” he added. “We are excited by the prospects for growth and look forward to working with our partners to support the ongoing development of critical energy infrastructure in the Eagle Ford region.”

HEP is an independent midstream energy company which owns and operates approximately 500 miles of natural gas pipelines, natural gas liquids processing plants, amine treating plants, a railroad park and other related midstream facilities in south Texas.

Dallas-based Crosstex Energy is an integrated midstream energy partnership which operates approximately 3,500 miles of natural gas, natural gas liquids and oil pipelines, and other energy-related infrastructure.

Headquartered in Greenwich, Connecticut, Alinda Capital Partners has more than $7.8 billion in equity commitments to infrastructure investments. From its offices in Houston, London, and Düsseldorf, the firm has invested in infrastructure businesses in the US, Canada, the UK, Germany, the Netherlands, Austria, Belgium, and Luxembourg.