AmeriGas buys Turner parent co.

AmeriGas Partners L.P. has agreed to acquire the propane operations of Energy Transfer Partners (ETP) L.P., parent company of Heritage Propane, for approximately $2.9 billion. AmeriGas has an office in Mammoth Lakes, and Heritage Propane operates locally under its Turner Propane subsidiary.

Energy Transfer Partners announced the deal on Oct. 17. Under the terms of the agreement, ETP will receive $1.5 billion in cash and approximately $1.3 billion of AmeriGas Partners common stock, according to an ETP press release. In addition, AmeriGas has agreed to assume about $71 million of existing Heritage Propane debt, the release said.

Following the transaction, ETP will own approximately 34 percent of the common stock of AmeriGas and has committed to retain those shares until at least 2013.

The transaction is expected to close late in 2011 or early in 2012, according to ETP via a press release. The ETP website says Heritage Propane is one of the three largest retail marketers of propane in the United States, serving more than 1 million customers in 41 states.

The deal, if approved by regulators, would create a gas monopoly of sorts in Mammoth Lakes. More soon.