Suburban Propane to acquire Inergy LP's retail propane business for $1.8 bn
26 April 2012
Suburban Propane Partners LP today agreed to acquire Inergy LP's retail propane operations for about $1.8 billion in order to become one of the top propane retailers in the US.
The deal is Suburban's biggest ever acquisition and also the second largest transaction in the propane retailing industry in less than a year after the $2.8 billion acquisition of Energy Transfer Partners' propane business by AmeriGas Partners in October 2011.
Although propane has long been used in barbecue grills, about 5 per cent of total US households now use propane for heating, according to Reuters.
Under the deal, Suburban's will pay $1 billion with newly issued Suburban senior notes, $200 million in cash and $600 million new Suburban common units.
Based in Whippany, New Jersey, Suburban is a nationwide marketer and distributor of propane, fuel oil and refined fuels, as well as the marketing of natural gas and electricity in deregulated markets.
Suburban has business operations in 30 states in more than 300 locations and serves 750,000 residential, commercial, industrial and agricultural customers.