PE-backed Tidewater to sell Pipestone and Dimsdale assets to AltaGas

• The deal’s total consideration is C$650m plus the assumption of power leases at Pipestone
• The form of consideration will be C$325 million in cash and C$325 million in AltaGas common shares
• Birch Hill, a Canadian mid-market private equity firm, invested in Tidewater in 2018

Tidewater Midstream and Infrastructure, a portfolio company of Birch Hill Equity Partners, has agreed to sell its Pipestone natural gas plant and expansion project and its Dimsdale natural gas storage facility and other assets. The buyer is AltaGas, an energy infrastructure company with headquarters in Calgary.

The deal’s total consideration is C$650 million plus the assumption of power leases at Pipestone. The form of consideration will be C$325 million in cash and C$325 million in AltaGas common shares.

The transaction is expected to be completed in the fourth quarter of 2023, subject to customary post-closing adjustments.

Based in Calgary, Tidewater is a midstream and energy infrastructure company. It plans to use net proceeds for general corporate purposes, including the repayment of amounts on its senior credit facility.

“We believe the Transaction unlocks significant value for our shareholders while strengthening our balance sheet to better address opportunities across our diversified portfolio of energy and energy transition infrastructure assets,” said Rob Colcleugh, interim CEO of Tidewater, in a statement.

Birch Hill, a Canadian mid-market private equity firm, invested in Tidewater in 2018.

National Bank Financial and CIBC Capital Markets are acting as financial advisors to Tidewater on the deal. Torys is acting as legal counsel.