NGL Energy Partners announces acquisition of Osterman Propane

NGL Energy Partners LP acquired the propane assets of New England-based E. Osterman Propane Inc. in exchange for cash, partnership units and a working capital payment for certain items, the partnership announced. The transaction is expected to close in early October. The Osterman propane assets primarily consist of retail propane operations in Massachusetts, Connecticut, Maine, New Hampshire, New York, Rhode Island and Vermont. Osterman owns or leases 20 customer service and satellite distribution locations, with aggregate aboveground propane storage capacity of 1.7 million gallons. For 12 months ended May 31, Osterman sold more than 40 million gallons of propane to about 80,000 residential, commercial, industrial and agricultural customers, NGL said. Vincent J. Osterman will join the NGL senior management team and have responsibility for all East Coast retail propane operations, NGL added. In addition, Osterman is expected to join the board of directors of NGL’s general partner.