NEW YORK & CALGARY, Alberta--(BUSINESS WIRE)--
Torq Energy Logistics, Ltd. ("Torq"), an affiliate of Torq Transloading
Inc., and KKR announced that they have entered into a definitive
agreement, pursuant to which KKR has committed to invest a total of
C$250 million to fund Torq's capital program and acquisition strategy.
Jarrett Zielinski, President and CEO of Torq commented: "We are honored
and excited to be partnering with KKR. The shared vision between us in
conjunction with the reputational and capital backing of KKR is expected
to provide a long runway for growth. Today is an extremely active and
exciting time to be in the energy logistics space. New technologies
continue to unlock oil and gas reserves previously deemed uneconomic.
The unexpected increase in energy production is reshaping the landscape
of how we move energy from wellhead to market. Torq has been compelled
to rethink conventional means and innovate new modes of energy
transportation and storage infrastructure so as to provide premium
economics for its customers and facilitate continued exploration and
Founded in 2011, Torq is a private company that provides transportation
solutions for producers seeking to transport crude oil by rail car in
Western Canada. Torq operates six transloading terminals and provides a
fully-integrated crude handling and transportation service from the
wellsite to the rail car.
Brandon Freiman, Director of KKR and senior member of the firm's energy
and infrastructure team, said: "We believe that continued growth in the
Canadian energy sector is dependent on new infrastructure solutions to
bring production to market. The team at Torq has taken a creative,
entrepreneurial approach to providing safe, reliable, and flexible
logistics solutions to Canadian producers, and we look forward to
partnering with them to support their continued growth."
The transaction, which is subject to customary closing conditions and
regulatory approvals, is expected to close in January 2014. Upon close,
three members of KKR's Energy & Infrastructure business, Raj Agrawal,
Brandon Freiman, and Frank Spelman will join the Board of Directors.
The investment is being made by KKR North American Fund XI and other
funds and accounts managed by KKR.
About Torq Energy Logistics, Ltd.
Torq Energy Logistics, Ltd. is a private company formed to provide
transloading services in Western Canada. The Company has established a
network of terminals in partnership with several key railway operators.
The Company is led by President/CEO Jarrett Zielinski, EVP/President of
Transloading Steve Smith, and EVP/President of Goulet Trucking Dean
Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a
leading global investment firm with $90.2 billion in assets under
management as of September 30, 2013. With offices around the world, KKR
manages assets through a variety of investment funds and accounts
covering multiple asset classes. KKR seeks to create value by bringing
operational expertise to its portfolio companies and through active
oversight and monitoring of its investments. KKR complements its
investment expertise and strengthens interactions with investors through
its client relationships and capital markets platform. KKR is publicly
traded on the New York Stock Exchange (NYSE:KKR) and "KKR", as used in
this release, includes its subsidiaries, their managed investment funds
and accounts, and/or their affiliated investment vehicles, as
appropriate. For additional information, please visit KKR's website at www.kkr.com.
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Torq Energy Logistics, Ltd.
Kristi Huller, 212-230-9722
of Communications, Americas
Source: KKR & Co. L.P.
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