(By Balaseshan) Ferrellgas Partners L.P. (NYSE: FGP), a distributor of propane and related equipment and supplies, said it has purchased IGS Propane, the propane division of Industrial Gas & Supply of Naugatuck, Connecticut.
The landmark purchase is Ferrellgas' first in The Constitution State. Specific terms of the transaction were not disclosed. The transaction will be immediately accretive.
"Ferrellgas has serviced customers in Connecticut from neighboring states for a number of years, but our purchase of IGS Propane gives us an even stronger presence in the state and in the region," said Steve Wambold, President and Chief Executive Officer of Ferrellgas.
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IGS Propane is Ferrellgas' third acquisition in its fiscal year that began August 1, 2012. The company previously announced the purchase of Flores Gas of El Paso, Texas, on October 31 and Capitol City Propane of Sacramento, California, on September 4.
Ferrellgas has completed about 240 acquisitions during its 73-year history, a strategy that has enabled the company to grow from a single-location, independently owned propane retailer to a publicly traded company that is now one of the largest propane companies in the country.
"We have long targeted New England for growth, and the addition of this quality business will enable us to more efficiently serve existing customers in Connecticut and south central Massachusetts and introduce our industry-leading propane service to new customers," said Wambold.
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Ferrellgas Partners' activities are primarily conducted through its operating partnership, Ferrellgas, L.P. The company serves about one million residential, industrial/commercial, portable tank exchange, agricultural, wholesale and other customers in all 50 states, the District of Columbia and Puerto Rico.
FGP is trading down 0.84% at $17.64 on Tuesday. The stock has been trading between $13.35 and $21.85 for the past 52 weeks.