AmeriGas Propane, Inc., general partner of AmeriGas Partners, L.P.
(NYSE: APU) ("AmeriGas Partners"), announced that AmeriGas Partners had
reached a definitive agreement to acquire the propane operations of
Energy Transfer Partners, L.P. ("Energy Transfer") for total
consideration of approximately $2.9 billion, including $1.5 billion in
cash, approximately $1.3 billion in AmeriGas common units, and the
assumption of $71 million in debt. Energy Transfer conducts its propane
operations in 41 states through subsidiaries including Heritage
Operating, L.P. and Titan Energy Partners, L.P. (collectively, "Heritage
Propane"). The acquisition of Heritage Propane will add over one million
retail propane customers and over 500 million gallons to AmeriGas's
nationwide propane distribution operations.
Eugene V.N. Bissell, president and chief executive officer, said, "This
transaction provides AmeriGas with an outstanding opportunity to grow
its core business. We look forward to working with Heritage Propane as
we merge two high-quality propane operations into one cohesive
organization. The combination of these two customer-focused teams will
provide us with the unique opportunity to utilize a broader platform to
enhance productivity, develop new growth opportunities and deploy new
technologies. As we integrate the businesses, we will adopt best
practices from each of the organizations in order to optimize service to
our customers and ensure strong financial performance for our investors."
Lon R. Greenberg, chairman of AmeriGas, and chairman and chief executive
officer of UGI Corporation (NYSE: UGI) said, "We are pleased to be
combining our AmeriGas propane operations with those of Heritage
Propane. The transaction responds effectively to the challenges faced by
the propane distribution industry over the past few years, and we
believe it will be value-creating in the future for our unitholders. We
structured the transaction so that AmeriGas would maintain a strong
balance sheet and preserve its credit ratings, and after discussions
with rating agencies, we believe that this goal has been achieved. We
are confident that the combination will contribute to achievement of
AmeriGas's long standing financial goals of growing EBITDA 3% annually
and increasing distributions by 5% per year.