Suburban Propane Partners, L.P. to Sell Tirzah Storage Facility to Plains LPG Services
Company Added
Company Removed
Apply to Request List

Suburban Propane Partners, L.P. to Sell Tirzah Storage Facility to Plains LPG Services

WHIPPANY, N.J., Sept. 19 // PRNewswire-FirstCall // -- Suburban Propane Partners, L.P. (the "Partnership") (NYSE: SPH), a nationwide marketer of propane gas, fuel oil and related products and services, announced today that its operating subsidiary, Suburban Propane, L.P. (the "Operating Partnership"), has signed a definitive agreement to sell its Tirzah, South Carolina underground granite propane storage cavern, and associated 62-mile pipeline, to Plains LPG Services, L.P. ("Plains") for approximately $55 million in cash, subject to adjustments. The 57.5 million gallon underground storage cavern is connected to the Dixie Pipeline and provides propane storage for the eastern United States. As part of the agreement, the Operating Partnership entered into a long-term storage arrangement with Plains that will enable the Operating Partnership to continue to meet the needs of its retail operations, consistent with past practices. The proceeds from the sale will be used for general corporate purposes. The transaction is expected to close within the next 30 days, subject to satisfaction of certain closing conditions.

In announcing the sale, President Michael J. Dunn, Jr. said, "The transaction further strengthens the Partnership's already strong balance sheet and is expected to be accretive to cash flow. The sale supports the Partnership's strategy of repositioning assets in markets that provide the best return on investment. We are proud of our Tirzah facility and we recognize the value enhancement potential as a result of Plains' ability to explore additional business opportunities."

Suburban Propane Partners, L.P. is a publicly traded Master Limited Partnership listed on the New York Stock Exchange. Headquartered in Whippany, New Jersey, Suburban has been in the customer service business since 1928. The Partnership serves the energy needs of approximately 1,000,000 residential, commercial, industrial and agricultural customers through more than 300 locations in 30 states.

SOURCE Suburban Propane Partners, L.P.



comments powered by Disqus

Franchise News Room »

News By Industry »

Featured Opportunities

Big Blue Swim School
Big Blue Swim School focuses on creating Big Moments for children ages six months to 12 years old.
American Family Care
The demand for health care services increases every year. People want and need access to health care on their terms - which usually means immediately!
IceBorn Water and Ice Vending
IceBorn is the franchise model for Ice House America, the pioneer in automated ice vending technology, with a global network of 3,500...
Save A Lot Food Stores
We are the nation's leading hard discount grocery chain designed for independent retailers. Our business model is focused on empowering our Retail...
Executive Care
Executive Care is more than just a Senior Care company. We are a full-service home health care company serving clients from infants to seniors. Our...
Share This Page

Subscribe to Our Newsletters

A Franchise Update Media Production
Franchise Update Media
P.O. Box 20547
San Jose, CA 95160
PH. (408) 402-5681
In Loving Memory Of Timothy Gardner (1987-2014)

Copyright © 2001 - 2019.
All Rights Reserved.