IFM to Take Pipeline Owner Buckeye Private for $6.5 Billion (2)

IFM Global Infrastructure Fund agreed to acquire Buckeye Partners LP, a U.S. owner and operator of oil pipelines and terminals on the East Coast and Gulf Coast, for $6.5 billion.

The Australian fund said May 10 it will pay $41.50 for each unit of Houston-based Buckeye, a master limited partnership that has 6,000 miles of pipeline and associated tanks and terminals. The offer represents a 27.5% premium to the closing unit price May 9.

The deal is the first full takeout of a pipeline MLP amid a rush of private-equity money into the industry, according to Hinds Howard, a portfolio ...