STAR GAS PARTNERS COMPLETES ACQUISITION OF PROPANE DISTRIBUTOR MIDWEST TRU-GAS
Midwest Tru-Gas operates primarily in the Wisconsin and Florida markets, with additional branches located in Minnesota and Georgia. The Company sells 23 million gallons of propane annually to 55,000 customers, 77% of whom are residential, from its 27 branches. It is anticipated that Midwest Tru-Gas's employees will remain with Star, and that the Company will continue to do business under the same brand names that it had been operating under prior to the purchase.
James Senty, President of Midwest Tru-Gas, commented, "I am very pleased with the manner in which the transaction was carried out and I look forward to assisting Star Gas in the future."
Star Gas Chairman and Chief Executive Officer, Irik P. Sevin, stated, "Midwest Tru-Gas is an important addition to the Star Gas family. They have a stellar reputation and an outstanding safety record. Its retail propane operations are both in a region that is adjacent to an area in which we already maintain a strong foothold, and it opens up a new territory to us in the Southern US as well. This purchase is consistent with Star's strategy of growing through acquisitions of both propane and home heating oil retailers that meet our disciplined requirements."
Star Gas Partners, L.P., is a leading distributor of home heating oil, propane and deregulated natural gas and electricity serving approximately 755,000 customers. Through its wholly owned Petro subsidiary, Star is the nation's largest retail distributor of home heating oil, serving approximately 385,000 customers in the Northeast, Mid-Atlantic and South. Star is the nation's seventh largest retail propane distributor, serving approximately 260,000 customers throughout the Midwest and Northeast. Star owns a controlling 72.7% interest in Total Gas and Electric, which sells natural gas and electricity to approximately 110,000 customers in the Northeast and Mid Atlantic.
This news announcement contains certain forward-looking information that is subject to certain risks and uncertainties as indicated from time to time in the Partnership's 10-K, 10-Q, 8-K and other filings with the Securities and Exchange Commission. Included risks and uncertainties are the effects of the weather on the Partnership's financial results, competitive and propane and heating oil pricing pressures and other factors impacting the propane, home heating oil, natural gas and electricity distribution industries.
