UGI Corporation (NYSE: UGI) today announced that its subsidiary, Flaga GmbH, has reached a definitive agreement to acquire the liquefied petroleum gas (LPG) distribution business of BP in Poland. BP’s Polish LPG business distributed over 150 million gallons of LPG in 2011 and serves the residential, commercial, autogas, and wholesale segments. UGI’s International Propane business distributed over 600 million gallons of LPG throughout Europe in fiscal 2012. The transaction is subject to customary closing conditions including regulatory approval in Poland, and is expected to close during the first half of 2013. Terms of the transaction were not disclosed.
Lon R. Greenberg, chairman and chief executive officer of UGI, said, “We look forward to adding BP’s Polish LPG business to our existing footprint in Poland, one of the largest LPG markets in Europe. The acquisition of this high-quality business reaffirms our commitment to add value for our shareholders through profitable growth in Europe and we expect the transaction to be modestly accretive to EPS in fiscal 2014, the first full fiscal year of integrated operations.”
UGI is a distributor and marketer of energy products and services. Through subsidiaries, UGI operates natural gas and electric utilities in Pennsylvania, distributes propane both domestically and internationally, manages midstream energy and electric generation assets in Pennsylvania, and engages in energy marketing in the Mid-Atlantic region. UGI, through subsidiaries, is the sole General Partner and owns 26% of AmeriGas Partners, L.P. (NYSE:APU), the nation's largest retail propane distributor.
Comprehensive information about UGI Corporation is available on the Internet at http://www.ugicorp.com.
This press release contains certain forward-looking statements that management believes to be reasonable as of today’s date only. Actual results may differ significantly because of risks and uncertainties that are difficult to predict and many of which are beyond management’s control. You should read UGI’s Annual Report on Form 10-K for a more extensive list of factors that could affect results. Among them are adverse weather conditions, cost volatility and availability of all energy products, including propane, natural gas, electricity and fuel oil, increased customer conservation measures, the impact of pending and future legal proceedings, domestic and international political, regulatory and economic conditions including currency exchange rate fluctuations (particularly the euro), the timing of development of Marcellus Shale gas production, the timing and success of our commercial initiatives and investments to grow our business, and our ability to successfully integrate acquired businesses, including Heritage Propane, and achieve anticipated synergies. UGI undertakes no obligation to release revisions to its forward-looking statements to reflect events or circumstances occurring after today.