(adapted from a recent Press Release written by Carly McFadden)
Platform Capital, a Denver-based private investment firm, has officially entered the propane distribution industry by recently acquiring six independent propane marketers throughout Oklahoma.
The company’s entrance into this space comes as more consumers are buying propane for its ecological, economical, and efficiency traits. At the same time, more and more local, family-owned propane storage, service and distribution companies are seeking a mutually beneficial exit strategy.
As such, the company has established a subsidiary of Platform Capital called Propane Fuels Distribution Holdings, which is focused on building and scaling a nationwide portfolio of consolidated independent propane marketers both large and small.
From waste & recycling, to industrial & transportation, to energy and natural resources and beyond, the company “has built a reputation for bringing integrity, reliability and trustworthiness to our investment approach” according to Walker. “We have an experienced team that brings considerable operational turnaround expertise and a hands-on approach to every acquisition.”
Platform Capital has recently completed its initial investment in the following Oklahoma-based propane entities:
- Green’s Propane in Wellston, Oklahoma
- Menz Propane in Union City, Oklahoma
- Dales Propane in Clayton, Oklahoma
- Kiamichi LP Gas in Idabel, Oklahoma
- McCurtain County Propane in Broken Bow, Oklahoma
- Ned Guest LP Gas OK in Valliant, Oklahoma
Each propane service location will retain its name, current location and employees, and Platform Fuels is focused on helping each of these businesses evolve their brands and continue the local legacy that they’ve established by standardizing and supporting enhanced services, expanded sales, and continue to provide exceptional customer service within their communities.
“Platform Capital and its investors are banking on margin growth created through the consolidation of administrative functions, implementation of operational technology, leveraging increased propane purchasing volume, fortification of local leadership and implementation of strategic long-term business development plans,” says Jake Walker.
According to Jake Walker, Platform Capital partner, the transaction and consolidation of the six entities represents over $10 million in revenue. According to LP Gas’ 2020 rankings, completing these initial investments – which represents 5.75 million gallons of total propane sales – instantly catapulted Platform Fuels to the 11th largest single state independent propane retailer in America.
Walker adds, “Platform Fuels is committed to continuing the legacy, spirit and success of local propane business owners and operators.”