Thursday, November 16, 2017
Delaware, MD (November 16, 2017) — NGL Energy Partners LP (Tulsa) has entered into a de nitive agreement with DCC LPG, a division of DCC Plc (Dublin, Ireland), to sell a portion of its retail propane business for $200 million in cash. NGL Energy Partners will retain the business through closing, scheduled for March 31, 2018, and will also retain all profits generated through the closing date.
The retail propane business subject to the transaction includes operations across 10 states in the mid-continent and western portions of the U.S., including the flagship Hicksgas business in Illinois and Indiana, along with Pacer Propane, Propane Central, and a number of smaller, local brands. NGL Energy’s liquids logistics unit will provide propane supply to DCC, along with numerous other propane retailers throughout the country. NGL will retain its retail propane businesses located in the northeastern, Mid-Atlantic, and southeastern regions, where the partnership expects to continue to grow its footprint through conversions from other fuels, population growth, and acquisitions.
“I believe this is a very positive transaction for both NGL and DCC. Shawn Coady and his team have built a tremendous business, providing DCC with a highly respected, experienced management team and a turnkey platform through which to build their U.S. retail propane operations,” said NGL Energy CEO Mike Krimbill.” The sale reflects a big step toward achieving our target compliance leverage of 3.25x or better. The terms of the transaction provide for a $20-million cash deposit on announcement that we can immediately deploy toward debt repayment. The remaining $180 million in cash proceeds, combined with the retained cash flows from the business generated through this heating season, provide significant cash for leverage reduction and allows us to maintain our earnings targets for this fiscal year.”
Shawn Coady, NGL Energy’s president of retail, who will be joining DCC in a management role, added, “We are very excited to enter a new chapter of our business with DCC and build on the success we’ve had prior to and since merging with NGL. DCC’s extensive experience in retail propane across multiple international markets, their desire to retain all of our employees, and their vision for growth in the U.S. provides a compelling opportunity for the collective team.”
NGL Energy Partners LP is a Delaware limited partnership that owns and operates five primary businesses: water solutions, crude oil logistics, NGL logistics, refined products/renewables, and retail propane. DCC is an international sales, marketing, and support services group that focuses on performance and growth. It operates four divisions: LPG, retail and oil, healthcare, and technology. It has operations in 15 countries throughout Europe.
(SOURCE: The Weekly Propane Newsletter, November 13, 2017)
The retail propane business subject to the transaction includes operations across 10 states in the mid-continent and western portions of the U.S., including the flagship Hicksgas business in Illinois and Indiana, along with Pacer Propane, Propane Central, and a number of smaller, local brands. NGL Energy’s liquids logistics unit will provide propane supply to DCC, along with numerous other propane retailers throughout the country. NGL will retain its retail propane businesses located in the northeastern, Mid-Atlantic, and southeastern regions, where the partnership expects to continue to grow its footprint through conversions from other fuels, population growth, and acquisitions.
“I believe this is a very positive transaction for both NGL and DCC. Shawn Coady and his team have built a tremendous business, providing DCC with a highly respected, experienced management team and a turnkey platform through which to build their U.S. retail propane operations,” said NGL Energy CEO Mike Krimbill.” The sale reflects a big step toward achieving our target compliance leverage of 3.25x or better. The terms of the transaction provide for a $20-million cash deposit on announcement that we can immediately deploy toward debt repayment. The remaining $180 million in cash proceeds, combined with the retained cash flows from the business generated through this heating season, provide significant cash for leverage reduction and allows us to maintain our earnings targets for this fiscal year.”
Shawn Coady, NGL Energy’s president of retail, who will be joining DCC in a management role, added, “We are very excited to enter a new chapter of our business with DCC and build on the success we’ve had prior to and since merging with NGL. DCC’s extensive experience in retail propane across multiple international markets, their desire to retain all of our employees, and their vision for growth in the U.S. provides a compelling opportunity for the collective team.”
NGL Energy Partners LP is a Delaware limited partnership that owns and operates five primary businesses: water solutions, crude oil logistics, NGL logistics, refined products/renewables, and retail propane. DCC is an international sales, marketing, and support services group that focuses on performance and growth. It operates four divisions: LPG, retail and oil, healthcare, and technology. It has operations in 15 countries throughout Europe.
(SOURCE: The Weekly Propane Newsletter, November 13, 2017)
