Riverstone makes bid for Gibson

Riverstone Holdings, which manages a group of energy-focused private equity funds, said it is acquiring midstream company Gibson Energy Holdings for C$1.1 billion.

The offer represents a multiple of 13 times Gibson’s profit from operations in 2007.

Founded in 1953, Gibson has a wide array of assets in Canada, including 11 oil and 49 propane distribution terminals, a natural gas liquids fractionation plant for independent producers, 290 miles of pipelines and 3.4 million barrels of tank storage.It also operates a fleet of 1,180 trailers moving more than 205 million barrels of crude oil, gas and other energy products through its facilities annually.

The purchase is being made from Hunting, based in London, England, which is seeking shareholder approval on Aug. 26. The deal also needs a tax certificate from the Canadian government. Riverstone managing director Andrew Ward said his company was pleased to do a deal with Gibson, which has strategic assets and infrastructure located “in the heart of the Western Canadian oil and gas producing region” and is well positioned to “continue delivering quality service.”

—Gary Park