Kinder Morgan Energy will spend $962 million in cash to buy two tanker companies as the transportation and storage company expands its shipping business.
American Petroleum Tankers has a fleet of five tankers that can hold 330,000 barrels of cargo.
State Class Tankers has commissioned the construction of four tankers that hold 330,000 barrels of cargo. They are expected to be completed in 2015 and 2016.
American Petroleum is owned by affiliates of investment firm The Blackstone Group LP and private equity firm Cerberus Capital Management. State Class Tankers is owned by an affiliate of Blackstone.
The deal is expected to close in the first quarter of 2014.
All the tankers comply with the Jones Act, a law that requires goods transported in the U.S. be done with U.S.-made ships owned by U.S. companies and with crew from the U.S.
Kinder Morgan Energy Partners LP, based in Houston, is a subsidiary of energy company Kinder Morgan Inc. Shares of Kinder Morgan Energy Partners rose 42 cents to $79.70 in morning trading Monday. Kinder Morgan shares rose 39 cents to $35.61. Blackstone shares rose 48 cents to $30.72.