Star Group Announces Completion of Acquisition
Star Group (NYSE:SGU) has successfully completed the acquisition of a home energy distributor, as announced in their December 2024 agreement. The transaction, valued at approximately $68 million before working capital adjustments, involves a distributor operating within Star's existing footprint.
CEO Jeff Woosnam expressed satisfaction with the acquisition, noting that it brings a well-established home energy distributor under the Star umbrella. The integration is expected to strengthen the company's competitive position across its operational territory. The acquired company's customers and employees will be integrated into the Star Group organization.
Star Group (NYSE:SGU) ha completato con successo l'acquisizione di un distributore di energia domestica, come annunciato nell'accordo di dicembre 2024. La transazione, valutata a circa 68 milioni di dollari prima degli aggiustamenti del capitale circolante, coinvolge un distributore che opera all'interno dell'area di attività esistente di Star.
Il CEO Jeff Woosnam ha espresso soddisfazione per l'acquisizione, sottolineando che porta un distributore di energia domestica ben consolidato sotto l'ombrello di Star. Si prevede che l'integrazione rafforzi la posizione competitiva dell'azienda nel suo territorio operativo. I clienti e i dipendenti dell'azienda acquisita saranno integrati nell'organizzazione di Star Group.
Star Group (NYSE:SGU) ha completado con éxito la adquisición de un distribuidor de energía para el hogar, como se anunció en su acuerdo de diciembre de 2024. La transacción, valorada en aproximadamente 68 millones de dólares antes de los ajustes de capital de trabajo, involucra a un distribuidor que opera dentro de la huella existente de Star.
El CEO Jeff Woosnam expresó su satisfacción por la adquisición, señalando que trae un distribuidor de energía para el hogar bien establecido bajo el paraguas de Star. Se espera que la integración refuerce la posición competitiva de la empresa en su territorio operativo. Los clientes y empleados de la empresa adquirida se integrarán en la organización de Star Group.
스타 그룹 (NYSE:SGU)는 2024년 12월 계약에서 발표된 대로 가정용 에너지 유통업체 인수를 성공적으로 완료했습니다. 이번 거래는 자본 운영 조정 이전에 약 6800만 달러로 평가되며, 스타의 기존 사업 영역에 운영되는 유통업체가 포함됩니다.
CEO 제프 우스남은 인수에 대한 만족감을 표현하며, 이로 인해 스타의 공동계 아래 확립된 가정용 에너지 유통업체가 추가된다고 언급했습니다. 통합은 회사의 운영 지역에서 경쟁력을 강화할 것으로 예상되며, 인수된 회사의 고객과 직원은 스타 그룹 조직에 통합될 것입니다.
Star Group (NYSE:SGU) a réussi à finaliser l'acquisition d'un distributeur d'énergie domestique, comme annoncé dans leur accord de décembre 2024. La transaction, évaluée à environ 68 millions de dollars avant les ajustements de fonds de roulement, concerne un distributeur opérant dans le périmètre d'activité existant de Star.
Le PDG Jeff Woosnam a exprimé sa satisfaction quant à cette acquisition, notant qu'elle permet d'intégrer un distributeur d'énergie domestique bien établi sous l'égide de Star. L'intégration devrait renforcer la position concurrentielle de l'entreprise dans son territoire d'opération. Les clients et les employés de l'entreprise acquise seront intégrés dans l'organisation de Star Group.
Star Group (NYSE:SGU) hat die Übernahme eines Hausenergiedistributors erfolgreich abgeschlossen, wie in ihrem Vertrag vom Dezember 2024 angekündigt. Die Transaktion, die auf etwa 68 Millionen Dollar vor Anpassungen des Working Capitals geschätzt wird, betrifft einen Distributor, der innerhalb der bestehenden Reichweite von Star tätig ist.
CEO Jeff Woosnam drückte seine Zufriedenheit mit der Übernahme aus und bemerkte, dass sie einen gut etablierten Hausenergiedistributor unter das Star-Dach bringt. Die Integration wird voraussichtlich die Wettbewerbsposition des Unternehmens in seinem Betriebsgebiet stärken. Die Kunden und Mitarbeiter des übernommenen Unternehmens werden in die Star Group-Organisation integriert.
- Strategic acquisition worth $68 million strengthens market position
- Acquisition target operates within existing footprint, enabling operational synergies
- Immediate expansion of customer base and workforce
- Significant capital expenditure of $68 million plus working capital adjustments
- Integration costs and risks associated with merging operations
Insights
The
The timing of this acquisition is particularly strategic as it comes during the peak winter heating season when home energy demand is typically highest. This allows for immediate revenue integration and potential synergies in operational efficiency. While specific terms weren't disclosed, the working capital adjustments mentioned suggest potential additional value considerations that could affect the final transaction price.
For investors, this expansion within existing territories suggests lower integration risk compared to entering new markets, while potentially offering cost synergies through consolidated operations. The deal's size relative to Star's market cap indicates it's a material transaction that could meaningfully impact future earnings, though the actual impact will depend on the acquired company's margin profile and potential synergies.
This acquisition reflects broader consolidation trends in the fragmented home energy distribution sector, where scale advantages in purchasing power and operational efficiency are increasingly critical. The strategic fit within Star's existing footprint suggests opportunities for route density optimization and improved cost metrics per customer.
The home energy distribution market faces evolving challenges from electrification trends and environmental regulations. This consolidation move helps Star maintain competitive positioning through increased scale while potentially improving customer density metrics - a important factor in distribution economics. The transaction's timing, announced in December and closed in January, aligns with typical industry M&A patterns that favor winter season closings for smoother operational transitions.
STAMFORD, Conn., Jan. 10, 2025 (GLOBE NEWSWIRE) -- Star Group, L.P. (the "Company" or "Star") (NYSE:SGU), a home energy distributor and services provider, today announced it has completed the acquisition related to a definitive purchase agreement previously announced in December, 2024. The transaction involved a home energy distributor located within the Company’s existing operating footprint; it was purchased for approximately
“I am pleased to announce the completion of this important acquisition, bringing another well-established home energy distributor under the Star umbrella,” said Jeff Woosnam, Star Group’s President and Chief Executive Officer. “As previously mentioned, the operations are expected to further strengthen our competitive position across the Company’s footprint, and we welcome its customers and employees to the Star Group family.”
About Star Group, L.P.
Star Group, L.P. is a full service provider specializing in the sale of home heating products and services to residential and commercial customers to heat their homes and buildings. The Company also sells and services heating and air conditioning equipment to its home heating oil and propane customers and, to a lesser extent, provides these offerings to customers outside of its home heating oil and propane customer base. Star also sells diesel, gasoline and home heating oil on a delivery only basis. We believe Star is the nation's largest retail distributor of home heating oil based upon sales volume. Including its propane locations, Star serves customers in the more northern and eastern states within the Northeast and Mid-Atlantic U.S. regions. Additional information is available by obtaining the Company's SEC filings at www.sec.gov and by visiting Star's website at www.stargrouplp.com, where unit holders may request a hard copy of Star’s complete audited financial statements free of charge.
Forward Looking Information
This news release includes "forward-looking statements" which represent the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, the price and supply of the products that we sell, our ability to purchase sufficient quantities of product to meet our customer’s needs, rapid increases in levels of inflation, the consumption patterns of our customers, our ability to obtain satisfactory gross profit margins, the effect of weather conditions on our financial performance, our ability to obtain new customers and retain existing customers, our ability to make strategic acquisitions, the impact of litigation, natural gas conversions and electrification of heating systems, pandemic and future global health pandemics, recessionary economic conditions, future union relations and the outcome of current and future union negotiations, the impact of current and future governmental regulations, including climate change, environmental, health, and safety regulations, the ability to attract and retain employees, customer credit worthiness, counterparty credit worthiness, marketing plans, cyber-attacks, global supply chain issues, labor shortages and new technology, including alternative methods for heating and cooling residences. All statements other than statements of historical facts included in this Report including, without limitation, the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to, those set forth under the heading "Risk Factors" and "Business Strategy" in our Annual Report on Form 10-K (the "Form 10-K") for the fiscal year ended September 30, 2024. Important factors that could cause actual results to differ materially from the Company’s expectations ("Cautionary Statements") are disclosed in this news release and in the Company’s Form 10-K and our Quarterly Reports on Form 10-Q. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. Unless otherwise required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this news release.
| CONTACT: | |
| Star Group, L.P. | Chris Witty |
| Investor Relations | Darrow Associates |
| 203/328-7310 | 646/438-9385 or cwitty@darrowir.com |
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