Daily News: February 9, 2012

Matrix Advises on Sale of North American Propane

Matrix Capital Markets Group, Inc. announced the sale of North American Propane, Inc. (NAP) to NGL Energy Partners LP for approximately $66.8 million in cash, subject to adjustment for certain assumed liabilities, working capital and other specified items. North American Propane operates as a large regional retail and wholesale distributor of propane, distillates and industrial gases to residential, commercial, industrial and agricultural customers.

Headquartered in Taunton, MA, NAP serves the Northeast and parts of the Mid-Atlantic, including Massachusetts, Connecticut, Maryland, Pennsylvania, Delaware, Rhode Island, Maine and New Hampshire. NAP was acquired in 2003 by management and majority shareholder Albion Investors, a private equity firm focused on middle market buy-outs.

Matrix Capital Markets Group served as exclusive financial advisor to North American Propane. The transaction was led by Mike Morrison, Bill Kerkam, David Shoulders and William O’Flaherty.

Morrison, managing director and principal at Matrix commented, “This is the second company we have sold for Albion in the last year. This is a great result for customers, ownership and NGL.”

Mark Arnold, managing partner at Albion Investors said, “Since 2003, NAP has grown rapidly through the acquisition of 14 companies in the propane, distillate and industrial gas segments. The resulting geographic reach and customer base aligns well with NGL’s business and product offering.”

According to H. Michael Krimbill, CEO of NGL Energy Partners, “This purchase expands our operations in the New England market and provides entry into the Mid-Atlantic market of the U.S. NAP serves in excess of 50,000 customers and delivers about 18 million gallons of retail volume, 8 million gallons of wholesale propane volume, and 10 million gallons of distillate volume annually.”

Bill Kerkam, senior vice president at Matrix, added, “The attractive geographic market and size of the transaction allowed us to generate significant interest from multiple players in the industry. The strategic fit with NGL is very apparent and we look forward to seeing them benefit from the Company’s strong foothold in the New England and Mid-Atlantic markets.”

Matrix Capital Markets Group is a middle-market investment bank focused on providing merger & acquisition and financial advisory services for privately held and private equity owned companies.