AmeriGas Partners LP, the largest retail propane distributor, will buy the propane operations of Energy Transfer Partners LP for $2.8 billion, the companies said today.
AmeriGas will pay $1.5 billion in cash, $1.3 billion in common stock and assume $71 million in debt in Energy Transfer’s two propane units, Heritage Operating LP and Titan Energy Partners LP, Energy Transfer said in a statement today.
The transaction is expected to close by early 2012. Energy Transfer will own about 34 percent of AmeriGas common stock, which it has agreed to hold until at least 2013, according to the statement.
The acquisition will add more than 1 million retail propane customers and more than 500 million gallons to AmeriGas’s propane operations, according to an AmeriGas statement.
