Matrix Capital Markets Group advised Midwestern Propane Gas on the sale of its propane distribution business to ThompsonGas. Midwestern Propane is an independent propane retailer, serving approximately 5,000 residential and commercial customers throughout Illinois and Missouri.
Matrix provided merger and acquisition advisory services to Midwestern Propane, including valuation advisory, marketing through a confidential and structured sale process, and negotiation of the sale. The transaction was managed by Spencer Cavalier, co-head of Matrix’s downstream energy and convenience retail group; Sean Dooley, director; and John Mickelinc, senior analyst.
Midwestern Propane was established in 1936 by A.J. and Martha Urban, who opened their first retail heating fuel location in Belleville, IL. The entrepreneurs originally sold butane throughout the state, which at the time was a new heating and cooking fuel. During the 1930s and 1940s, as the company grew, it eventually transitioned from selling butane to propane in the 1950s.
Darrell Urban, grandson of the original founders and third generation owner, took over operations in 1985. Under Urban’s leadership, Midwestern Propane grew both organically and through a series of acquisitions. In total, Urban and Ron Brodwater, general manager, completed four acquisitions from 1995 to 2005. Urban continued to grow the company, until his unfortunate passing in 2019, when his wife became the primary shareholder. Midwestern Propane is now under the leadership of Ron Brodwater, the company’s president (and former long-time general manager),
“Matrix was highly recommended by a friend who sold his propane business using Matrix as his investment banker,” Brodwater said. “Matrix exceeded my expectations. My sincere thanks to Spencer, Sean and John for their thorough 24/7 effort on behalf of the company and Susan Urban.”
“To advise on the sale of an 80-plus-year-old company that has been in the family for three generations was truly an honor. It has been a privilege to work with Ron and his team to successfully execute this transaction for the Urban family,” Dooley said.
Matthew Schneider, Derek Moore and Robert Leible of Husch Blackwell served as legal counsel for Midwestern Propane.
