Tallgrass Energy Partners, LP has decided to acquire an additional 31.3 percent interest in Tallgrass Pony Express Pipeline, LLC for cash consideration of $475 million and 6.518 million TEP common units issued to Tallgrass Development.

Based on TEP's December 31st closing price of $41.21, the total consideration of approximately $743.6 million represents a multiple of approximately 9.0x incremental cash flow to TEP as a result of the acquisition.

The acquisition increases TEP's membership interest in Pony Express to 98 percent.

Tags: Tallgrass Energy Partners