Blackstone buys controlling stake in Tallgrass Energy for $3.3 billion

Tallgrass Energy, an oil pipeline maker based in Leawood, Kansas, sold to the New York-based Blackstone Group for $3.3 billion in a deal that gives the investment giant a controlling interest, the company announced Jan. 31.

Blackstone’s infrastructure fund will acquire a 44 percent stake in Tallgrass Energy LP, a publicly traded entity that holds the company’s energy infrastructure investments. It will also get 100 percent ownership of Tallgrass Energy GP, which manages the publicly run entity.

Tallgrass Energy’s management, including CEO David Dehaemers Jr., will remain, according to the company.

“Blackstone’s scale, long-term capital and investment expertise across the energy industry make it an ideal partner for our business as we continue to create value and invest capital in accretive growth opportunities,” Dehaemers said in a press release.

Prior to the Blackstone deal, Tallgrass Energy was partnered with Kelso and EMG, another New York investment company. Dehaemers said the partnership provided “significant support” for Tallgrass Energy.

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