Gibson Energy to acquire Cal-Gas

Gibson Energy Inc. has entered into a letter of intent to acquire Cal-Gas Inc., a retail propane company with operations across Canada.

According to its website, Cal-Gas Inc. owns a large, modern transportation fleet that operates from an expanding branch network in 23 locations across western and central Canada.

Gibson also closed the purchase of Stittco Energy Ltd., a provider of propane equipment, service and delivery to commercial, industrial and residential customers in northern Manitoba and the Northwest Territories.

Gibson’s available cash plus its existing credit facilities will fund the transactions, the company says. It plans to close the Cal-Gas deal in the second quarter. Financial details were not disclosed.

Gibson is a large, independent midstream energy company based in Calgary. It owns Canwest Propane, the second-largest retail propane distribution company in the country, behind Superior Propane.