Apollo announced that Apollo-managed funds have agreed to acquire a 40% stake in Pembina Gas Infrastructure Inc., a premier gas processing entity in Western Canada, from funds managed by KKR. Pembina Pipeline Corporation, which operates and manages PGI’s facilities, will maintain its 60% stake in the company and the existing governance structure will remain unchanged upon closing. The transaction is expected to close by the end of the second quarter of 2026.
The strategic partnership with Apollo allows PGI to expand its business model with the potential to deploy capital into attractive development projects alongside one of the world's leading midstream operators.
Apollo is a high-growth, global alternative asset manager with over US$938 billion in assets under management. Through its investing expertise across its fully integrated platform Apollo seeks to provide clients excess return throughout the investment spectrum, from investment grade credit to private equity.
Formed in 2022, PGI is now one of the largest independent gas processing platforms in Western Canada, with a combined capacity of five billion cubic feet per day. With connectivity to major gas transmission networks in the region, PGI is strategically positioned to serve its blue-chip customer base throughout the Montney and Duvernay trends, from central Alberta to northeast British Columbia.
Bennett Jones acted as counsel to Apollo, with a team led by John M. Mercury (Private Equity, M&A), with John Lawless, Steven Bodi, Julia Pasieka, Laura Glover, Lauren Carson, Evan E. Hall, Hayden Logan, Kendall Pearce and David Hodge (Private Equity, M&A), Anu Nijhawan, Jared A. Mackey and Spencer Brown (Tax), Jessica Kennedy, Ashley M. White, Ben Rogers and Thomas Machell (Energy), Luke Stretch and Jessica Munro (Real Estate), Kees de Ridder and J. Sébastien A. Gittens (Intellectual Property), Zirjan (Zee) J. Derwa (Competition/Antitrust), Noriko Shimura and Xaverie MacLennan (Banking and Finance), Allyson Marta (Pensions and Benefits) and Michael H. VanderMeer (Employment Services).
