Platform Capital enters propane industry with 6 acquisitions

Denver-based Platform Capital entered the propane distribution industry by acquiring six independent propane retailers in Oklahoma.

According to the company, the acquisitions come as more consumers are buying propane for its economical, fuel-efficient and eco-friendly traits, and many family-owned propane storage and distribution companies are seeking a mutually beneficial exit strategy.

Platform Fuels Distribution Holdings completed its initial investment in the business and associated real estate holdings of the following Oklahoma-based entities: Green’s Propane in Wellston, Menz Propane in Union City, Dales’ Propane in Clayton, Kiamichi LP Gas in Idabel, Ned Guest LP Gas OK in Valliant and McCurtain County Propane in Broken Bow, Oklahoma.

Each company will retain its name and service personnel, and Platform Fuels aims to help them grow through enhanced services, sales and customer relationships, the company says.

“Platform Capital and its investors are banking on margin growth created through the consolidation of administrative functions, implementation of operational technology, leveraging increased propane purchasing volume, fortification of local leadership and implementation of strategic long-term business development plans,” says Jake Walker, Platform Capital partner.

According to Walker, the transaction and consolidation of the six entities represents over $10 million in revenue. Completing these initial investments, representing 5.75 million gallons of total propane sales, catapulted Platform Fuels to the 11th largest single state independent retailer in the U.S., according to LP Gas’ 2020 rankings.

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