JP Energy Partners...
(April 30, 2012) – Irving, Texas – JP Energy Partners, LP, (“JPE”), has agreed to acquire Heritage Propane Express, LLC (“HPX”). JPE through its subsidiary Pinnacle Propane, LLC (“Pinnacle”), is a leading distributor of propane in the south and southwest United States. HPX is a rapidly growing business serving the eastern two thirds of the United States, and is the third largest propane cylinder exchange business in the country. The acquisition of HPX will add cylinder exchange as a service offering to Pinnacle Propane, which will complement Pinnacle’s retail propane and refined fuel businesses.
The transaction is expected to close in early June, 2012 and is subject to approval by the Federal Trade Commission.
J. Patrick Barley, CEO of JP Energy Partners, commented on the acquisition “As we continue to execute our strategy to grow Pinnacle Propane, this transaction provides diversification of cash flow and propane demand. HPX’s peak demand season is during the spring and summer, offsetting the more traditional propane heating season in the fall and winter. HPX is a well-run company, and we are excited to work with the management team to realize its full potential as a nationwide cylinder exchange provider”.
JP Energy expects all HPX employees to continue after the transaction. The addition of HPX will expand Pinnacle Propane’s service area to the eastern two-thirds of the country, making Pinnacle Propane one of the leading propane companies in the United States.
Rob Chalmers, SVP of Corporate Development, said “as we continue to aggressively expand our propane operations, the footprint provided by HPX will help facilitate entry into new markets served by HPX for our traditional retail business.”
JP Energy Partners was formed in 2010 to focus on developing a platform of assets to provide integrated refinery services. JPE currently owns these assets through its subsidiaries Pinnacle Propane, JP Crude Oil Services and JP Refined Products. The ownership and management team of JP Energy Partners bring extensive experience and a history of success in the energy business. For more information about JP Energy Partners and Pinnacle Propane can be found at www.jpenergypartners.com and www.pinnpropane.com.
Heritage Propane Express is the 20 pound cylinder exchange division formerly owned by Heritage Propane. HPX through its network of production facilities delivers 20 pound cylinders primarily for home grilling, patio heating and mosquito suppression. End users can exchange an empty cylinder with a full cylinder at any of HPX’s network of providers. For more information about HPX go to www.heritagepropaneexpress.com. .