Flint Hills Resources LLC, a unit of industrial conglomerate Koch Industries, is buying propylene supplier PetroLogistics LP for US$2.1 bln in an all cash, including debt. With this, Koch gains control of a plant that can convert cheap U.S. shale gas into propylene. PetroLogistics' propane dehydrogenation plant produces about 1.45 bln lbs of propylene per year. The unit, Flint Hills Resources LLC, a refining, chemicals and biofuels company, will also buy all of the membership interests in PetroLogistics general partner PetroLogistics GP LLC, ass pr Reuters.
Koch, with annual revenue of US$115 bln, was the second-largest private company in the United States in 2013, according to Forbes. The company is led by brothers David and Charles Koch, two of the world's richest men. Flint Hills will pay US$14 in cash for each PetroLogistics unit to minority shareholders who own 27% of the company. A group of shareholders who control the remaining 73% stake will get US$12/unit. This group includes Lindsay Goldberg LLC, York Capital Management, PetroLogistics' executive chairman, David Lumpkins, and its chief executive, Nathan Ticatch.
29-May-14 
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