(By Balaseshan) UGI Corp. (NYSE: UGI), a retail distributor of propane and butane, said its subsidiary -- Flaga GmbH -- has agreed to buy the liquefied petroleum gas (LPG) distribution business of BP Plc (NYSE: BP) in Poland for an undisclosed sum.
UGI expects the transaction to be modestly accretive to earnings per share in fiscal 2014, the first full fiscal year of integrated operations.
BP's Polish LPG business distributed over 150 million gallons of LPG in 2011 and serves the residential, commercial, autogas, and wholesale segments.
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UGI's International Propane business distributed over 600 million gallons of LPG throughout Europe in fiscal 2012.
"We look forward to adding BP's Polish LPG business to our existing footprint in Poland, one of the largest LPG markets in Europe. The acquisition of this high-quality business reaffirms our commitment to add value for our shareholders through profitable growth in Europe," said Lon Greenberg, chairman and chief executive officer of UGI.
The transaction is subject to customary closing conditions including regulatory approval in Poland, and is expected to close during the first half of 2013.
Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, distributes propane both domestically and internationally, manages midstream energy and electric generation assets in Pennsylvania, and engages in energy marketing in the Mid-Atlantic region.
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UGI is trading down 0.51 percent at $31.47 on Tuesday, while BP trades up 0.29 percent at $41.35.