Back to top

Image: Bigstock

TransMontaigne to Merge With ArcLight's Unit in $536M Deal

Read MoreHide Full Article

TransMontaigne Partners L.P. recently entered into a merger agreement with ArcLight Energy Partners Fund VI, L.P.’s indirect subsidiary, TLP Finance Holdings, LLC. The deal is expected to enable TLP Finance to acquire all the outstanding units of TransMontaigne, which are not already owned by TLP Acquisition Holdings, LLC, for $41 per common unit. The aggregate value of the transaction is estimated at $536 million.

Following the news of the merger agreement, TransMontaigne units jumped 12.6% in the last trading session. Its units climbed up to $40.98 at the close of market on Nov 26.

Transaction Details

Notably, a similar offer of $38 per common outstanding units of TransMontaigne was made in July. Based on the stock price of $36.40 on Nov 23, the offered price translates into a 12.6% premium.

Per the deal, the unitholders of TransMontaigne will be receiving 80.5 cents of quarterly distribution per unit, until the deal closes. The transaction, which awaits some necessary approvals, is expected to close in first-quarter 2019. Headquartered in Denver, CO, the midstream firm’s common units will stop being publicly traded, upon transaction closure.

Price Performance

The stock has surged 6.7% in the past year against 10.4% collective fall of the industry it belongs to.

 

 

Zacks Rank & Stocks to Consider

Currently, TransMontaigne has a Zacks Rank #3 (Hold). Investors interested in the energy sector can opt for some better-ranked stocks given below:

Houston, TX-based Enterprise Products Partners L.P. (EPD - Free Report) holds a Zacks Rank #1 (Strong Buy). The company’s earnings for 2018 are expected to surge more than 36% year over year. You can see the complete list of today’s Zacks #1 Rank stocks here.

Rome, Italy-based Eni S.p.A. (E - Free Report) has a Zacks Rank #1. Its earnings for 2018 are expected to grow more than 100% from the 2017 level. 

Houston, TX-based Shell Midstream Partners, L.P. carries a Zacks Rank #2 (Buy). The company’s profits for 2018 are expected to grow nearly 20% from 2017.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Enterprise Products Partners L.P. (EPD) - free report >>

Eni SpA (E) - free report >>

Published in