Koch Industries Inc.’s subsidiary Flint Hills Resources LLC significantly expanded its chemicals business with the completion of its purchase of PetroLogistics LP and its general partner, PetroLogistics GP LLC. At $2.1 billion, the transaction is the largest in the company’s history and the first chemical asset it acquired since its purchase of Huntsman Corp.’s U.S. commodity chemical business in 2007.

The acquisition was finalized through the merger of the Flint Hills Resources subsidiary FHR Propylene LLC with and into PetroLogistics. Flint Hills Resources will operate PetroLogistics’ Houston propylene facility as part of its chemical and refining business. PetroLogistics began operating in 2010 and has a production capacity of about 1.45 billion pounds of propylene per year.

All of PetroLogistics’ outstanding common units were converted into the right to receive $14 per common unit in cash, except for those owned by Lindsay Goldberg LLC, York Capital Management and MLP GP’s executive chairman, president and CEO. Those common units were acquired for $12 each in cash. Further, all holders of record of common units on July 15 will receive a one-time distribution of 40 cents per common unit. As a result of the merger, PetroLogistics will no longer be a publicly traded company and its common units will no longer be traded on the New York Stock Exchange or any other securities exchange.