Ferrellgas Partners, L.P. announced in a Jan. 5 news release the acquisition of Rio Grande Valley Gas, Inc., of Edinburg, Texas. Terms of the deal were not disclosed.
According to the release, the transaction adds nearly 2,500 customers to the partnership’s existing base and strengthens the partnership’s presence in the fast-growing border-area market.
“The addition of Rio Grande Valley Gas is the most recent example of our commitments to growth in the Lone Star State and smart growth through acquisition. We expect this acquisition to be immediately accretive,” said President and CEO Steve Wambold.
The acquisition of Rio Grande Valley is seen as a strong complement to the company’s recent acquisition of Federal Petroleum which offers service to the Weslaco and Brownsville area, and to its existing operations in San Benito. Ferrellgas’ service footprint now extends deeply into the Rio Grande Valley, a rapidly expanding business and residential market.
Rio Grande Valley Gas is Ferrellgas’ third acquisition in Texas in this fiscal year, following the additions of Welch Propane on Nov. 30 and Federal Petroleum Co. on Oct. 20, and the company’s fifth of its fiscal year which began on Aug. 1.
Ferrellgas Partners, L.P. through its operating partnership, Ferrellgas, L.P., serves approximately one million customers in all 50 states, the District of Columbia, and Puerto Rico.