American private investor KKR has signed a C$250m deal with Torq Energy Logistics, a subsidiary of Torq Transloading, to support the company's capital program and acquisition strategy.
The funds will be provided by KKR North American Fund XI, other funds and accounts managed by KKR.
KKR director and energy and infrastructure team senior member Brandon Freiman said, "We believe that continued growth in the Canadian energy sector is dependent on new infrastructure solutions to bring production to market.
"The team at Torq has taken a creative, entrepreneurial approach to providing safe, reliable, and flexible logistics solutions to Canadian producers, and we look forward to partnering with them to support their continued growth."
Subject to customary closing conditions and regulatory approvals, the transaction is expected to close in January 2014.
Following the deal, KKR's Energy & Infrastructure business members Raj Agrawal, Brandon Freiman and Frank Spelman will join Torq's board of directors.
Torq caters to producers seeking to transport crude oil by rail car in Western Canada, and it operates six transloading terminals. The company provides a fully-integrated crude handling and transportation service from the wellsite to the rail car.