Ferrellgas divests business lines to focus on retail propane, tank exchange

August 2, 2018 By    

Ferrellgas Partners divested its Bridger Environmental, Bridger Transportation, Bridger Terminals and Blue Rhino Global Sourcing lines of business.

The divestitures reflect Ferrellgas’ decision to focus on its core retail propane distribution and Blue Rhino tank exchange operations, the company says. The transactions generated net proceeds of about $92 million, which are to be reinvested in growth opportunities of the propane business, debt reduction or general working capital purposes, the company says.

Ferrellgas completed the Bridger sale, which includes the company’s saltwater disposal operations, all assets associated with its crude oil trucking business and two crude oil injection terminals to two subsidiaries controlled by Pilot Flying J on July 31, the company reports. Other terms of the deal were not disclosed.

In separate transactions, the remaining assets of Bridger Terminal were sold to various parties, the largest of which, the Swan Ranch Terminal, was sold to a division of The Granite Peak Group.

The company also sold Blue Rhino Global Sourcing, which manufactures and distributes grills, fire pits and grilling tools. The transaction closed on July 27 to an undisclosed buyer. This business is not related to the Blue Rhino tank exchange business, which the company will continue to own and operate, Ferrellgas says.

“We continue to pursue strategies to enable us to focus on our retail propane and Blue Rhino tank exchange businesses,” says James E. Ferrell, interim CEO and president of Ferrellgas. “Our propane operations have seen strong growth this year and we have good momentum. We see that trend continuing as we build our company for long-term success to the benefit of our customers, our employees and our investors.”

*Featured image by: iStock.com/designer491

About the Author:

Clara Richter is the managing editor at LP Gas magazine. Contact her at crichter@northcoastmedia.net or 216-363-7920.

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