Ferrellgas announces acquisition of Vanson

Ferrellgas, a propane distributor, announces purchase of Vanson LLC for undisclosed price

• On 10:38 am EDT, Thursday September 24, 2009

OVERLAND PARK, Kan. (AP) -- Propane distributor Ferrellgas Partners LP said Thursday that it acquired Vanson LLC, which specializes in liquefied petroleum gas.

Terms of the deal to purchase St. Joseph, Mich.-based Vanson were not disclosed. Vanson, with 14 offices and 79 employees, serves roughly 29,000 customers in Michigan, Indiana and Illinois.

Ferrellgas said the acquisition will strengthen its existing geographic markets and boost earnings. Ferrellgas serves roughly 1 million customers in all 50 states, the District of Columbia and Puerto Rico.

The company said its recent private placement of $300 million of senior notes due 2017 and refinancing of a $400 million working capital credit due 2012 give it financial flexibility.

Ferrellgas employees indirectly own more than 20 million common units of the partnership through an employee stock ownership plan.

In morning trading, Ferrellgas shares fell 5 cents to $19.55.