Sprague to acquire natural gas, electricity business from Global Partners LP

PORTSMOUTH, N.H. -- Sprague Resources LP announced today that its wholly owned subsidiaries, Sprague Operating Resources LLC and Sprague Energy Solutions Inc., signed a definitive agreement with Global Companies LLC to acquire the assets of Global’s natural gas marketing and electricity brokerage businesses for approximately $17.3 million in cash, subject to customary closing adjustments.

Global’s natural gas marketing and electricity brokerage businesses serve approximately 4,000 commercial, industrial, municipal and institutional customer locations across New York, New Jersey, Massachusetts, Rhode Island, New Hampshire and Maine. The acquired customer portfolio is expected to increase Sprague’s annual natural gas sales volume by approximately 8 billion cubic feet and expand annual electricity brokerage by 1 billion kWh, all within Sprague’s current service area.

After the purchase is closed, Sprague will supply natural gas to an estimated 20,000 customer locations. The Global transaction is expected to be accretive to distributable cash flow and generate approximately $3 million of adjusted EBITDA annually.

“I am pleased to announce the third strategic acquisition for Sprague’s natural gas business in the past three years," said David Glendon, President and Chief Executive Officer. “The purchase deepens Sprague’s offering within our core Northeast footprint and continues our focused strategy of increasing the number of smaller commercial customers we serve. In addition, Global’s significant New York City presence accelerates our recent growth in this key market. Sprague’s natural gas supply and scheduling expertise also present an opportunity for us to optimize logistics and enhance margins across a larger customer base.”

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