Wednesday, November 11, 2020
Denver-based Platform Capital LLC has entered the propane distribution industry in a big way with its recent acquisitions of six independent propane distribution companies in Oklahoma. According to the company, the move comes as more consumers are buying propane for its economical, fuel efficient, eco-friendly traits and many family-owned propane storage and distribution companies are seeking a mutually beneficial exit strategy.
Capitalizing on these two merging market forces, Platform Fuels Distribution Holdings LLC completed its initial investment in the business and associated real estate holdings of the following Oklahoma-based firms. They include Green’s Propane LLC (Wellston), Menz Propane (Union City), Dales’ Propane LLC (Clayton), Kiamichi LP Gas (Idabel), Ned Guest LP Gas OK (Valliant), and McCurtain County Propane (Broken Bow).
Each company will retain its name and service personnel, while Platform Fuels intends to grow the local brands through enhanced services, sales, and customer relationships.
According to Platform Capital partner Jake Walker, the transaction and consolidation of these six entities represents more than $10 million in revenue with strong EBITDA margins. Completing these initial investments catapulted Platform Fuels to the 11th largest single state independent retailer in the U.S., representing 5.75 million gallons of propane sold.
According to Walker, Platform Fuels will continue to focus on acquiring propane storage and delivery companies serving both residential and commercial customers in rural markets throughout the Central U.S. “Platform Capital and its investors are banking on margin growth created through the consolidation of administrative functions, implementation of operational technology, leveraging increased propane purchasing volume, fortification of local leadership, and implementation of strategic long term business development plans,” Walker said.
SOURCE: The Weekly Propane Newsletter, November 12, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
Capitalizing on these two merging market forces, Platform Fuels Distribution Holdings LLC completed its initial investment in the business and associated real estate holdings of the following Oklahoma-based firms. They include Green’s Propane LLC (Wellston), Menz Propane (Union City), Dales’ Propane LLC (Clayton), Kiamichi LP Gas (Idabel), Ned Guest LP Gas OK (Valliant), and McCurtain County Propane (Broken Bow).
Each company will retain its name and service personnel, while Platform Fuels intends to grow the local brands through enhanced services, sales, and customer relationships.
According to Platform Capital partner Jake Walker, the transaction and consolidation of these six entities represents more than $10 million in revenue with strong EBITDA margins. Completing these initial investments catapulted Platform Fuels to the 11th largest single state independent retailer in the U.S., representing 5.75 million gallons of propane sold.
According to Walker, Platform Fuels will continue to focus on acquiring propane storage and delivery companies serving both residential and commercial customers in rural markets throughout the Central U.S. “Platform Capital and its investors are banking on margin growth created through the consolidation of administrative functions, implementation of operational technology, leveraging increased propane purchasing volume, fortification of local leadership, and implementation of strategic long term business development plans,” Walker said.
SOURCE: The Weekly Propane Newsletter, November 12, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
