AmeriGas Propane to divest certain assets in Hawaii

AmeriGas Propane, the nation’s largest retail propane company and a subsidiary of UGI Corp., entered into a definitive agreement to divest certain assets in Hawaii to Isle Gas. 

Isle Gas is a wholly owned subsidiary of AMF Hawaii Investment Holdings managed by Argo Infrastructure Partners.

The transaction includes the sale of about 750,000 gallons of propane storage facilities and a fleet of delivery vehicles used to serve thousands of residential and commercial customers throughout Hawaii.

Isle Gas will be serviced by Hawaii Gas, which currently supplies nearly 34,000 non-utility customers with propane across the state. Hawaii Gas and Isle Gas are both wholly owned by funds managed by Argo.

“Our continuing focus is on investing in and growing infrastructure assets that provide essential services to their communities,” says Jason Zibarras, managing partner and founder of Argo Infrastructure Partners. “The addition of these assets will complement our existing Hawaii operations supporting a more resilient and energy-efficient future.”

AmeriGas says proceeds will be used to pay down debt, consistent with its capital allocation priorities.

“This divestiture reflects our commitment to maximize value through our unwavering focus on driving better operational and financial performance coupled with strategic portfolio management,” says Mike Sharp, president of AmeriGas. “Exiting the Hawaii operations allows us to concentrate our resources and supply infrastructure on markets where we can achieve superior operational results and deliver enhanced customer value.”

The transaction is expected to close in the fourth quarter of fiscal year 2025, subject to customary closing conditions.

According to the 2025 LP Gas Top Retailers rankings, AmeriGas sold 737 million gallons of propane to over 1.1 million customers from 1,360 locations in fiscal year 2024.

Cetane Associates served as the exclusive financial adviser to AmeriGas Propane.

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