July 16 (Reuters) - Pipeline company Genesis Energy LP said it would buy Enterprise Products Partners LP’s Gulf of Mexico pipelines and services business for about $1.5 billion to expand its offshore pipelines business.
Enterprise said the sale will help fund asset purchases in the Eagle Ford and Permian basin in Texas.
The offshore assets being acquired include Enterprise’s stake in nine crude oil pipeline systems with more than 1,100 miles of pipeline and nine natural gas pipeline systems totaling about 1,200 miles.
Enterprise said it expects to record an impairment charge of about $100 million related to the sale in the quarter ended June 30.
Genesis Energy said it expects the acquisition to add to its four offshore pipelines in the Gulf of Mexico.
The company said the acquisition, which is expected to close this month, would immediately add to its cash available for distribution.
Citigroup Global Markets Inc was the financial adviser to Genesis Energy.
Up to Wednesday’s close, Genesis Energy’s shares had risen 10 percent this year, while Enterprise’s shares fell 16 percent. (Reporting by Anet Josline Pinto in Bengaluru; Editing by Sriraj Kalluvila)