Propane distributor Ferrellgas Partners LP said Monday that it
has agreed to buy Bridger Logistics LLC for $837.5 million, a move
that will expand its midstream services.
Under the terms of the deal, Dallas-based Bridger will receive
$562.5 million in cash and 11.2 million in Ferrellgas common
units.
Bridger operates in 14 states across major U.S. crude oil
production regions such as the Permian and Bakken shales. The
company owns and operates midstream assets, providing crude oil
logistics such as trucking to end markets across North America.
`Ferrellgas, one of the nation's largest propane retailers known
for its Blue Rhino grilling tanks, said the deal will allow it to
significantly expand its midstream division, which it launched in
May 2014 after acquiring Sable Environmental LLC.
Ferrellgas also announced that it will boost its shareholder
payout by about 2.5% to 51.25 cents a unit upon the deal's closing,
which is expected by July 1.
Write to Chelsey Dulaney at Chelsey.Dulaney@wsj.com
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