Platinum Equity has signed a definitive agreement to acquire EDP, a large independent U.S. propane distribution business serving residential, commercial, and agricultural customers.
Headquartered in Chicago, EDP serves more than 200,000 customers through a network of more than 60 locations across 24 states.
The company distributes propane and light fuels and provides related energy services through locally managed operating businesses.
EDP has expanded through both organic growth and acquisitions while retaining local brands, management teams, and community relationships.
Platinum Equity plans to support investments across sales, marketing, operating capabilities, technology infrastructure, and additional strategic acquisitions.
The private equity firm sees opportunities for continued consolidation within the fragmented U.S. propane distribution market.
EDP CEO Kevin Pollack will continue leading the company following completion of the transaction.
Platinum Equity has significant experience investing in distribution, route-based service, and multi-location businesses, making EDP consistent with several of the firm’s established investment areas.
EDP’s customer base spans residential homeowners, commercial organizations, and agricultural operations across states including Michigan, New York, California, Florida, Pennsylvania, Wisconsin, Massachusetts, and others.
The acquisition remains subject to regulatory approvals and customary closing conditions.
J.P. Morgan Securities and Baird are advising Platinum Equity on the acquisition, while Latham & Watkins is providing legal counsel.
Acquisition financing will be arranged by J.P. Morgan Securities, Guggenheim Corporate Funding, Oaktree, and Fifth Third.
Founded in 1995 by Tom Gores, Platinum Equity manages approximately $48 billion of assets and has completed more than 550 acquisitions across manufacturing, distribution, transportation, logistics, technology, telecommunications, and other industries.
KEY QUOTES:
“EDP has built an exceptional business with an attractive combination of scale, recurring customer demand and strong local market positions.”
Louis Samson, Co-President Of Platinum Equity
“We see opportunities to support the company’s ongoing organic growth initiatives, invest in its operating capabilities and technology infrastructure, and pursue additional acquisitions in what remains a highly fragmented market.”
David Glatt, Managing Director At Platinum Equity
“Platinum Equity shares our long-term vision for the business and brings substantial operational expertise, acquisition experience and financial resources that will help us continue executing our growth strategy.”
Kevin Pollack, CEO Of EDP
