© 2014 The Texas Lawbook.
By Natalie Posgate
Staff Writer for The Texas Lawbook
(June 12) – Dallas corporate attorneys at Gardere Wynne Sewell and Weil, Gotshal & Manges are advising Dallas-based Southcross Energy LLC and San Antonio-based TexStar Midstream Services, LP as they combine and form a new company called Southcross Holdings LP.
In the merger agreement, Southcross will acquire roughly one-third of TexStar’s midstream assets for about $450 million. The value for the actual combination of the two companies was not disclosed.
Gardere partner Robert Sarfatis led the transaction for Southcross and received assistance from associate Rick Jordan. Partner Rodney Moore and associate Monty Ward of Weil represented TexStar.
Southcross isn’t new to Sarfatis as a client. He represented the master limited partnership in its formation and its other acquisitions
Sarfatis said the current deal is unique because it combines two major Eagle Ford midstream companies that are backed by three preeminent private equity firms – Boston and New York-based Charlesbank Capital Partners, Washington, D.C.-based EIG Global Energy Partners and Dallas-based Tailwater Capital.
Houston attorneys from Latham & Watkins were also involved in the deal. The firm represented Southcross Energy Partners, LP, a master limited partnership that will be indirectly controlled by the new company, Holdings, on various MLP matters related to the transaction.
The Latham team consisted of partner Ryan Maierson and associate John Greer, who handled the corporate matters, and partners Craig Kornreich and Catherine Ozdogan and associates Ethan Gao and Bryce Kaufman, who handled the finance matters.
Southcross is a portfolio company for Charlesbank, and TexStar is a portfolio company for EIG and Tailwater. When the deal closes, the three firms will each indirectly own approximately one-third of the new company, which will be headquartered in Dallas.
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