Ferrellgas Acquires Bridger Logistics - O'Keeffe and O'Malley

Ferrellgas Acquires Bridger Logistics

Jun 01, 2015

Kansas City, MO-based propane distributor Ferrellgas Partners LP has agreed to buy Bridger Logistics, LLC for $837.5 million. The acquisition is expected to bring Ferrellgas an additional $100 million in earnings over the next twelve months.

Bridger, based in Dallas, TX, operates in 14 states across major U.S. crude oil production regions such as the Permian and Bakken shales. The company owns and operates midstream assets, providing crude oil logistics such as trucking to end markets across North America.

Ferrellgas, one of the nation's largest propane retailers known for its Blue Rhino grilling tanks, said the deal will allow it to significantly expand its midstream division, which it launched in May 2014, after acquiring Sable Environmental LLC. The overall goal of the diversification plan is to bring the copany to a 70%/30% split between propane-based profits and non-propane-based business by fiscal 2017. The company is alreaady ahead of schedule on its goal and may set a new target soon.

Ferrellgas also announced that it will boost its shareholder payout by about 2.5% to 51.25 cents per unit upon deal closing.

Under the terms of the deal, Bridger will receive $562.5 million in cash and 11.2 milion in Ferrellgas common units.