United Fuel Sells Propane Distribution Business.
United Fuel & Energy Corporation, a leading distributor of gasoline, diesel and lubricant products to customers in the southwestern and south central U.S., has sold substantially all of the assets of its propane distribution business.
The assets were purchased by Propane Direct Enterprises, LLC, a business newly established by Thomas E. Kelly, the company's Vice Chairman and a member of the company's board of directors.
The transaction was completed for approximately $7.7 million in cash, plus $2.1 million in seller notes. The company is using the net cash proceeds from the sale of the assets of its propane distribution business to repay certain term loans and borrowings under its revolving credit facility.
The sale, which closed on December 31, 2008, excludes a $3.4 million portion of accounts receivable being retained by United Fuel.
"We are pleased to have completed the sale of this non-core business line at a substantial gain," said Frank Greinke, United Fuel & Energy's Chairman and Chief Executive Officer. "The propane business didn't integrate well into our fuel distribution and card-lock operations and we felt that this was an excellent time to complete this attractive transaction to streamline operations and strengthen our balance sheet. We paid down our banking credit facilities by $7.1 million and reduced our annualized interest expense on the related debt pay-down by approximately $400,000."
For more information, visit www.ufeonline.com
((Comments on this story may be sent to email@example.com))
((Distributed via M2 Communications Ltd - http://www.m2.com))
|Printer friendly Cite/link Email Feedback|
|Date:||Jan 8, 2009|
|Previous Article:||Exelon Integrates Additional Nuclear Assets, Dissolves AmerGen Energy.|
|Next Article:||FMC Technologies CFO Joins Panel at Goldman Sachs Energy Conference.|