Star Gas makes first acquisition in four years

Star Gas Partners LP is acquiring Griffith Energy Services Inc., a company based in Columbia, Md. Star Gas is acquiring the equity of Griffith for $69.9 million plus working capital, which will be determined at closing.

According to a press release, Griffith sold 800,000 gallons of propane in fiscal year 2012. Most of its sales were in motor fuel (47 million gallons) and heating oil (24.9 million gallons).

“Ever since our last major acquisition, of Champion in 2010, we have been searching for additional assets that can add scale and leverage our existing fixed cost base,” says Steve Goldman, Star Gas CEO, in a press release. “Griffith does just that, providing access to approximately 50,000 residential and commercial accounts across the Mid-Atlantic region.