Ferrellgas Partners, L.P. Announces Acquisitions of Salathe Propane and North Star Exchange
October 11 2018 - 09:00AM
Ferrellgas Partners, L.P. (NYSE:FGP) (“Ferrellgas” or the
“Company”) today announced it has completed the acquisitions of
Salathe Gas Co. of Harvey, Louisiana, and North Star Exchange Inc.
of Walton, Indiana. Both companies had been longtime third-party
distributors for Ferrellgas’ Blue Rhino barbecue tank exchange
division. The transactions are expected to be immediately
accretive. Terms of the deals were not disclosed.
Utilizing cylinders produced at Ferrellgas’ Livingston, Texas,
facility, Salathe services the entire state of Louisiana and the
southern half of Mississippi from its offices in Harvey; Lafayette,
Louisiana; Ruston, Louisiana, and Vicksburg, Mississippi. North
Star Exchange has a production facility in Walton along with six
propane tank staging areas in Indiana and Ohio, from which the
company services customers in Indiana, Ohio, and Kentucky.
The acquisitions are an additional step the company has taken to
maximize EBITDA in the propane tank exchange business by
internalizing and eliminating commission payments made to certain
Blue Rhino independent distributors. In October 2017, the company
made a similar move when it purchased former Blue Rhino independent
distributor Tapper Propane Equipment Inc. of Decatur, Michigan.
“We are pleased to welcome Salathe Gas and North Star Exchange
and their employees to the Ferrellgas family,” said Ferrellgas
President and Interim Chief Executive Officer Jim Ferrell. “These
transactions are an important part of our ongoing strategy to
further maximize profitability in this growing piece of the
business by purchasing former Blue Rhino independent distributors
we deem strategic to our tank exchange operations.”
Since its founding in 1939, Ferrellgas has acquired nearly 250
independent retail propane companies.
About Ferrellgas Ferrellgas Partners, L.P.,
through its operating partnership, Ferrellgas, L.P., and
subsidiaries, serves propane customers in all 50 states, the
District of Columbia, and Puerto Rico. Ferrellgas employees
indirectly own 22.8 million common units of the partnership,
through an employee stock ownership plan. Ferrellgas Partners, L.P.
filed a Form 10-K with the Securities and Exchange Commission on
September 27, 2018. Investors can request a hard copy of this
filing free of charge and obtain more information about the
partnership online at www.ferrellgas.com.
Forward Looking Statements Statements in this
release concerning expectations for the future are forward-looking
statements. A variety of known and unknown risks, uncertainties and
other factors could cause results, performance, and expectations to
differ materially from anticipated results, performance, and
expectations. These risks, uncertainties, and other factors include
those discussed in the Form 10-K of Ferrellgas Partners, L.P.,
Ferrellgas Partners Finance Corp., Ferrellgas, L.P., and Ferrellgas
Finance Corp. for the fiscal year ended July 31, 2018, and in other
documents filed from time to time by these entities with the
Securities and Exchange Commission.
Contacts Jim Saladin, Media Relations –
jimsaladin@ferrellgas.com, 913-661-1833 Bill Ruisinger, Investor
Relations – billruisinger@ferrellgas.com, 816-792-7914
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