TULSA, Okla.--(Oil and Energy News)--NGL Energy Partners LP (NYSE: NGL) today announced the signing of a contribution and sale agreement with Pacer Propane (“Pacer”), whereby the assets of Pacer would be contributed to NGL in exchange for approximately $30.5 million in cash plus net working capital and 1.5 million NGL common units. Pacer Propane was founded in 1991 by Frank Mapel and other partners, and has grown over the years to include retail propane operations in the states of Washington, Oregon, Utah, Colorado, Illinois and Mississippi. Closing is anticipated in early January and the transaction is expected to be immediately accretive.
“Partnering with NGL allows myself, my partners and our employees the ability to continue the Pacer legacy,” Mr. Mapel said. “I am excited by the opportunities this transaction presents for our employees and will remain active working with NGL management.”
“Pacer Propane expands our geographic footprint into the western states, and is expected to add approximately 17 million gallons of annual volume, an estimated $7.0 - $8.0 million annual EBITDA, and will enhance our weather diversification strategy,” noted Shawn Coady, Retail Division Co-President and Chief Operating Officer. “Since NGL Energy Partners May 2011 initial public offering, we have extended our retail propane operations to both coasts and significantly expanded our midstream business by adding 12 natural gas liquids terminals through our recently completed SemStream transaction.”
About NGL Energy Partners LP
NGL Energy Partners LP is a Delaware limited partnership. The Partnership owns and operates a vertically integrated energy business with three operating segments: midstream, wholesale supply and marketing and retail propane. The Partnership completed its initial public offering in May 2011. For further information visit the Partnership’s website at www.nglenergypartners.com.