TPG Growth, an affiliate of private equity firm TPG, said June 27 it entered an agreement to acquire Dallas-based Discovery Midstream, which has an asset position in Colorado's Denver-Julesburg (D-J) Basin.

Discovery’s current management team will continue to run the company post-transaction and is investing alongside TPG Growth in this transaction. Additional terms of the transaction were not disclosed.

Backed by Old Ironsides Energy, Discovery Midstream provides oil and natural gas gathering and natural gas processing services in the southern portion of the D-J Basin. The company's assets are strategically located in Weld and Adams counties, Colo.

Discovery is currently constructing more than 120 miles of pipeline and a 60 million cubic feet per day (MMcf/d) natural gas processing plant, which is expected to come online in the third quarter of 2017. The company plans to expand the plant capacity to 260 MMcf/d in 2018. Discovery’s system is supported by long-term contracts with leading producers in the D-J Basin, according to TPG Growth's press release.

“In partnering with Discovery, we are backing a strong and experienced management team that is building a cost-effective, full-service, high-quality midstream platform in one of the most attractive basins in the U.S.,” Christopher Ortega, partner at TPG, said in a statement.

TPG Growth, which currently has more than $8.3 billion of assets under management, is the middle market and growth equity platform of global alternative asset firm TPG, with headquarters in Fort Worth, Texas, and San Francisco.

The firm said it expects the Discovery transaction to close third-quarter 2017. Vinson & Elkins LLP is TPG Growth's legal adviser for the transaction. Discovery’s financial adviser is Evercore, and its legal advisor is Weil, Gotshal & Manges LLP.