Ferrellgas Partners L.P. (FGP), a leading distributor of propane and equipment in the U.S., said it has acquired Wisconsin-based Polar Gas Company. The acquisition significantly strengthens Ferrellgas' footprint in Wisconsin, a key cold-weather market.
Situated in Poplar, Wisconsin, Polar’s operations also include a satellite office in nearby Solon Springs. The company’s operations greatly complement Ferrellgas’ already strong presence in Wisconsin as well as position it as a seamless provider in the area.
The Polar Gas assets form a great strategic and operational fit for Ferrellgas, given its well-earned reputation for service and safety and its presence in the Great Lakes region. The acquisition adds nearly 4,000 new customers to the Ferrellgas’ existing customer base.
The acquisition of Polar Gas further demonstrates Ferrellgas' strategy to grow by aggressively pursuing and acquiring well-run propane companies. Polar is the latest of more than 230 acquisitions the company has completed during its 72-year history.
Polar Gas marks Ferrellgas' third acquisition for this fiscal year, which began on August 1, 2011. Earlier, the partnership acquired Economy Propane of Lakeport, California, in late September; followed by the addition of Federal Petroleum Company, a Texas -based retailer, in October.
Overland Park, Kansas-based Ferrellgas Partners L.P. provides propane services to Residential, Industrial, Portable Tank Exchange, Agricultural and Wholesale customers. The partnership serves about one million customers in the USA. The major competitors of the partnership are AmeriGas Partners L.P. (APU), Energy Transfer Partners L.P. (ETP) and Suburban Propane Partners L.P. (SPH).
Ferrellgas Partners retains a Zacks #5 Rank (short-term ‘Strong Sell’ rating). However, we maintain our long-term “Neutral” rating on the stock.
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