Platinum Equity Moves to Acquire EDP, Expanding Propane Distribution Footprint

Platinum Equity to Acquire EDP

In a significant development in the propane distribution sector, Platinum Equity has announced the signing of a definitive agreement to acquire EDP, a prominent provider of propane and related services to various customer segments including residential, commercial, and agricultural clients across the United States.

Based in Chicago, EDP services over 200,000 customers through a robust network of more than 60 operational locations spread across 24 states. Established as one of the largest independent propane distributors in the country, the company has experienced substantial growth driven by a blend of strategic acquisitions and organic expansion. EDP is recognized for its unwavering commitment to safety, reliability, and exceptional customer service.

Louis Samson, Co-President of Platinum Equity, emphasized the critical role of propane in fulfilling energy needs across diverse sectors. He stated, "Propane continues to play a vital role in meeting the energy needs of residential, commercial, and agricultural customers across the country. EDP has built an exceptional business with an attractive combination of scale, recurring customer demand, and strong local market positions. We are excited to partner with management and invest behind the next chapter of growth."

Platinum Equity has a strong track record of investing in distribution and route-based services, making their acquisition of EDP a move aimed at expanding the company’s geographic reach and enhancing customer relationships. David Glatt, Managing Director at Platinum Equity, noted, "EDP has proven to be an effective platform for integrating acquisitions while continuing to deliver strong service levels and operational performance across its network. We see opportunities to support the company's ongoing organic growth initiatives, invest in its operating capabilities and technology infrastructure, and pursue additional acquisitions in what remains a highly fragmented market."

Continuing in his role, EDP’s CEO Kevin Pollack highlighted the company’s unique platform that integrates the functionalities of a large-scale national organization while retaining the entrepreneurial spirit foundational to their local operating companies. Pollack asserted, "Platinum Equity shares our long-term vision for the business and brings substantial operational expertise, acquisition experience, and financial resources that will help us continue executing our growth strategy."

The acquisition is pending customary closing conditions and regulatory approvals, with Platinum Equity being advised by J.P. Morgan Securities LLC and Baird for this transaction. Meanwhile, legal counsel is provided by Latham & Watkins LLP. Financing for the acquisition will also involve arrangements from J.P. Morgan Securities LLC, Guggenheim Corporate Funding, LLC, Oaktree, and Fifth Third.

About Platinum Equity

Founded in 1995 by Tom Gores, Platinum Equity is a globally recognized investment firm managing approximately $48 billion in assets. The company has an impressive portfolio of around 60 operating entities across various sectors. It specializes in mergers, acquisitions, and operations—a strategy they describe as MAO®—and has successfully completed over 550 acquisitions over the last 30 years.

About EDP

EDP stands out as a reputable and stable propane distributor within the U.S. market. The company continues to build a strong presence through its long-term strategy of acquiring successful operations in the propane sector while maintaining brand identity and community engagement. With a stronghold in both retail and commercial propane services, EDP operates in multiple states, providing safe and reliable propane service to a wide demographic of customers.

As this acquisition unfolds, the propane industry and its stakeholders will be looking closely at the strategies and future developments that Platinum Equity and EDP will implement to enhance service delivery and operational excellence in the propane sector.