Macquarie Infrastructure Corp. has signed a merger agreement with an affiliate of Argo Infrastructure Partners for MIC’s Hawaii businesses.
MIC Hawaii primarily consists of a combined regulated gas utility and unregulated distributor of propane and several smaller businesses, collectively engaged in efforts to reduce the cost and improve the reliability and sustainability of energy in Hawaii.
Following the transaction, these businesses will become a wholly owned subsidiary of Argo for expected consideration of $3.83 per unit, corresponding to an enterprise value for MIC Hawaii of $514 million, including assumed debt and transaction costs.
MIC launched the sales processes early in 2020, which were later followed by the sale of MIC’s bulk liquid storage terminal business, IMTT, for $2.67 billion in December. The proceeds were used to eliminate holding company level debt, with the remainder distributed to shareholders as a special dividend of $11.00 per share i
