Ferrellgas Buys Wisconsin Propane Co. - Analyst Blog
November 18 2011 - 8:30AM
Zacks
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.
AMERIGAS PARTNR (APU): Free Stock Analysis Report
ENERGY TRAN PTR (ETP): Free Stock Analysis Report
FERRELLGAS -LP (FGP): Free Stock Analysis Report
SUBURB PROPANE (SPH): Free Stock Analysis Report
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