PPC agrees to sell EDP to Platinum Equity

PPC, a family-oriented investment firm that partners with family-, founder- and management-owned businesses, reached a definitive agreement under which Platinum Equity would purchase EDP, a provider of propane distribution services.

Founded in 2012 by Tom Knauff, a 40-year veteran of the industry, EDP provides propane services to more than 200,000 residential, commercial, industrial and agricultural customers across 24 states. The company has been built through the strategic acquisition of 45 operators while preserving their local brands and leadership teams. PPC invested in EDP in 2020 alongside the founders, existing family office investors and management. Since then, EDP has more than tripled EBITDA through organic growth and strategic acquisition, according to the company, which is ranked 10th on LP Gas’ list of the largest propane retailers in the country with 122 million gallons in sales.

“In 2020, we sought a partner that would honor the company’s legacy and culture while helping us expand our team, transition leadership and pursue accelerated growth,” says Knauff, founder and executive chairman of EDP, and an LP Gas Hall of Famer. “We are fortunate to have found partners who embraced our vision and gave us the support to grow, and all of us at EDP are grateful for the partnership of PPC, Concentric Equity Partners and our other shareholders.”

Adds Kevin Pollack, CEO of EDP, “PPC has been a valuable partner through a period of rapid growth, bringing a deep understanding of founder-led businesses and strong financial and operational support. Their respect for our culture and our team allowed us to expand without compromising our commitment to our employees, customers and the local communities we serve.”

Eric Kieras, investment partner at PPC, reflected on the past six years of working alongside EDP.

“We are proud to have supported Tom and the EDP leadership team over the past six years as they expanded their operational footprint and transitioned day-to-day leadership to the next generation,” he says. “EDP is a terrific business, and we are confident the company is well positioned for continued success with its new partners.”

Founded in 1995 by Tom Gores, Platinum Equity is a global investment firm with approximately $48 billion of assets under management and a portfolio of approximately 60 operating companies that serve customers around the world. Platinum Equity specializes in mergers, acquisitions and operations – acquiring and operating companies in a broad range of business markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology, telecommunications and other industries. Over the past 30 years, it has completed more than 550 acquisitions.

Terms of the transaction were not disclosed. The transaction is expected to close in November, subject to customary closing conditions.

Solomon Partners acted as exclusive financial adviser and Kirkland & Ellis LLP acted as legal adviser to EDP.

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