Tallgrass Energy Accepts $4B Investor Buyout

Leawood-based Tallgrass Energy, LP, is selling its outstanding stock to an investor group that includes an arm of private-equity firm Blackstone and Spain-based energy corporation Enagas, and others, for just over $4 billion.

The investors are paying $22.45 each for Tallgrass’ outstanding class A shares and bringing it private, in a deal they expect to close during next year’s second quarter if it gains majority shareholder approval. 

Tallgrass stock closed yesterday at $18.29 per share.

Founded in 2012 and headed up by CEO William Moler, Tallgrass transports crude oil and natural gas from basins in the Rocky Mountains, Upper Midwest and Appalachian regions through nearly 10,000 miles of owned pipeline.

Earlier this month, the company named Matthew Sheehy president. Formerly with Tallgrass, he left in 2018 to chair Bridger Aerospace Group, a Blackstone-owned aerial firefighting company. 

In August, Blackstone Infrastructure Partners made a proposal to take Tallgrass private for $19.50 per share.