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Ferrellgas Acquires Rio Grande Valley Gas in Southeast Texas
By: TexasBusiness.com Posted: Wednesday, January 11, 2012 12:03 am
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Texas Business reports: OVERLAND PARK, Kan.—Ferrellgas Partners LP, a propane retailers, acquired Rio Grande Valley Gas Inc. of Edinburg, Texas.
The transaction adds nearly 2,500 customers to the partnership's existing base and strengthens the partnership's presence in the fast-growing border-area market. Specific terms of the transaction were not disclosed.
“The addition of Rio Grande Valley Gas is the most recent example of our commitments to growth in the Lone Star State and smart growth through acquisition. We expect this acquisition to be immediately accretive,” said Ferrellgas chief executive Steve Wambold in a prepared statement. “We welcome our new employees and customers, and look forward to continuing Rio Grande Valley Gas' traditions of excellent service and safety.”
The addition of Rio Grande Valley Gas complements the acquisition of Federal Petroleum, which offers service to the Weslaco and Brownsville area, and to its existing operations in San Benito, officials said.
Ferrellgas' service footprint now extends deeply into the Rio Grande Valley, a rapidly expanding business and residential market.
Rio Grande Valley Gas is Ferrellgas' third acquisition in Texas this fiscal year, following the additions of Welch Propane on November 30, and Federal Petroleum Company on October 20. It is the company's fifth acquisition of its fiscal year, which began on August 1. Ferrellgas has completed approximately 235 acquisitions during its 72-year history, a strategy that has grown the company from a single-location, independently owned propane retailer to a publicly traded, Fortune 1000 company that is now one of the largest propane companies in the country. |
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