Hagerstown, MD – September 1, 2011 ThompsonGas announced today that its subsidiary, ThompsonGas-Southeast (the “Company”) has purchased substantially all of the assets of Cooperative Propane, (“Cooperative”) based in Andalusia, Alabama as well as substantially all of the assets of Fox Gas, (“FOX”) of Foxworth, Mississippi. ThompsonGas’ purchase of these companies follows on the heels of six earlier acquisitions of propane companies in 2010 and 2011.
With these acquisitions, ThompsonGas will become the 19th largest retail propane company in the United States by adding nearly 6 million gallons and $20 million in annual revenues. When complete, the Company will serve nearly 170,000 customers in 10 states. These transactions are expected to be immediately accretive to ThompsonGas cash flow.
“We are excited to bring together ThompsonGas and the Cooperative and Fox operations. These are two high-quality propane businesses with great people,” said J. Randall Thompson, President and CEO of ThompsonGas. “These transactions represent an attractive strategic opportunity for ThompsonGas. We are continuing to greatly expand our presence in the Southeast and the whole east coast of the United States. These additions enhance ThompsonGas’ operating platform and further positions us to deliver long-term growth in cash earnings to our members.”
Cooperative and Fox will blend into our current market foot print. “Much of what has made Cooperative and Fox successful propane companies are the employees’ commitment to customers and their entrepreneurial spirit. We are extremely excited about welcoming this high-quality, dedicated workforce to the ThompsonGas team,” said Thompson.
ThompsonGas has offered employment to substantially all of the current employees of both Cooperative and Fox. “Mr. Benny Gay, of Cooperative, will be named Regional Vice President- Southeast Operations and oversee the Company’s southeast propane operations,” said Thompson.
The transactions represent ThompsonGas’ 18th and 19th acquisitions since its founding in 1946, and ThompsonGas intends to operate the assets under existing trade names for the next 12 to 24 months. ThompsonGas intends to permanently finance the transactions with a combination of equity and debt in line with its long-term capital structure objectives.
ThompsonGas., with headquarters in Hagerstown, MD, is among the fastest growing propane companies in the country. ThompsonGas’ operations include the retail marketing, sale, and distribution of propane to residential, commercial, industrial, and agricultural customers. Today, ThompsonGas serves approximately 170,000 retail customers from over 44 customer service centers throughout the United States. ThomsponGas also operates a propane rail terminal in Baltimore, Maryland that serves independent dealers and multi-state marketers in the Mid-Atlantic region. For further information visit the company’s website at www.thompsongas.com.