Ferrellgas Completes Sale of Non-Core Business Assets

Ferrellgas Partners LP (Overland Park, Kan.) said Aug. 1, 2018 it had divested its Bridger Environmental, Bridger Transportation, and Bridger Terminals businesses and its Blue Rhino Global Sourcing lines of business. Ferrellgas said the divestitures reflect the decision to focus on core retail propane distribution and Blue Rhino tank exchange operations. The transactions generated net proceeds of about $92 million, which are to be invested in the propane business.

The Bridger sales include the company’s saltwater disposal operations, all assets associated with crude oil trucking, and two crude oil injection terminals. The assets have been sold to two subsidiaries controlled by Pilot Flying J (Knoxville, Tenn.). Other terms of the deal were not disclosed. In separate transactions, the remaining assets of the Bridger Terminals business were sold to various parties. The largest of the assets, the Swan Ranch terminal, was sold to a division of the Granite Peak Group (Casper, Wyo.).

Finally, Ferrellgas completed the sale of Blue Rhino Global Sourcing, which manufactures and distributes grills, fire pits, and grilling tools. The transaction closed July 27 to an undisclosed buyer. The business is not associated with the Blue Rhino tank exchange business, which Ferrellgas will continue to own and operate. “We continue to pursue strategies that enable us to focus on our retail propane and Blue Rhino tank exchange businesses,” said James E. Ferrell, interim CEO and president of Ferrellgas. “Our propane operations have seen strong growth this year and we have good momentum.

We see that trend continuing as we build our company for long-term success to the benefit of our customers, our employees, and our investors.”

(SOURCE: The Weekly Propane Newsletter, August 13, 2018)