Inergy LP plans to acquire two businesses
Aug 1, 2003 12:00 PM
Inergy LP has signed a purchase agreement with EOTT Energy LP to acquire its West Coast natural gas liquids (NGL) business for $10.1 million, subject to certain post-closing adjustments. The closing of the transaction is dependent upon standard closing conditions, including receipt of certain third-party approvals.
The business includes gas processing, fractionation, 6.1 million gallons of aboveground NGL storage, truck and rail distribution facilities, and a 23-tractor NGL transportation fleet — all in south central California.
Inergy also has reached an agreement to acquire substantially all of the propane assets of United Propane Inc, based in Millersville MD. The acquisition will be Inergy's 20th retail propane acquisition since its founding in 1996. Consideration for the assets will be a combination of common units, senior subordinated units, cash, and certain assumed liabilities.
Founded in 1943, United Propane is the 24th-largest retailer and distributor of propane in the United States. It delivered approximately 23 million gallons of propane in the past 12 months and serves nearly 30,000 customers from 12 customer service centers in Maryland, Delaware, and West Virginia.
As a result of this acquisition, United Propane will become a new regional brand name for Inergy in the nation's mid-Atlantic region. Robert Pascal, owner of United Propane, is expected to join the Inergy board of directors. Darshanna Patel, president of United Propane, will retain her position, along with other members of the firm's senior management team.
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