CH Energy Group, Inc. (CH Energy Group), indirect wholly owned
subsidiary of Fortis Inc. (TSX:FTS), announced today it has entered into
a definitive agreement under which subsidiary Griffith Energy Services,
Inc. (Griffith) will be acquired by Star Gas Partners, L.P. (Star Gas)
(NYSE:SGU).
Under the terms of the agreement, Star Gas will acquire the equity of
Griffith for US$69.9 million plus working capital, which will be
determined at closing. The acquisition is anticipated to close during
the first quarter of 2014, subject to customary closing conditions and
regulatory approval.
Star Gas is the nation's largest retail distributor of home heating oil,
based upon sales volume, operating throughout the Northeast and
Mid-Atlantic, with sales of more than US$1.7 billion in fiscal year 2013.
Griffith is a leading energy services provider in the Mid-Atlantic
region, distributing heating oil, motor fuels and propane and providing
HVAC services to both residential and commercial customers. Griffith has
operations in Virginia, West Virginia, Delaware, District of Columbia,
Maryland, and Pennsylvania.
“Griffith is a success story, capably expanding its customer base and
services since first joining us in 2000,” said Steven V. Lant, Chief
Executive Officer of CH Energy Group and Central Hudson Enterprises
Corp., holding companies for Griffith. “We are proud of Griffith’s
growth and accomplishments, and believe Star Gas to be the right partner
for the company. CH Energy Group has exited this business sector so that
we can concentrate on the management of our utility holdings. We wish
both Griffith and Star Gas much success in the future, as we focus on
our core operations as a New York regulated utility company.”
Completion of the transaction is subject to, among other things,
regulatory approvals including approval under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 and other customary closing
conditions.
Additional information about Griffith and Star Gas can be found at www.GriffithOil.com
and www.Star-Gas.com.
Copyright Business Wire 2014