UGI Corp. on Aug. 21 closed on its deal to buy the roughly 69.2 million common units of propane retailer AmeriGas Partners LP UGI did not already own, completing the cash-and-stock simplification merger between the two companies.
"We are pleased to announce the completion of this transaction, which fully consolidates our ownership of AmeriGas and creates a platform for future cash flow and earnings growth for UGI," UGI President and CEO John Walsh said in an Aug. 21 news release. "[T]he merger presents an opportunity to further align our LPG distribution operations across the U.S. and Europe to drive efficiencies and accelerate growth."
The deal closing comes after about 93% of AmeriGas unit holders voted in favor of the merger, representing about 60% of the partnership's total outstanding common units as of July 1. AmeriGas became a wholly owned subsidiary of UGI and will no longer trade on the New York Stock Exchange.
Prior to the closing, UGI owned about a 26% stake in AmeriGas, with its Amerigas Propane Inc. subsidiary serving as AmeriGas' general partner. UGI agreed in April to buy the AmeriGas common units it did not already own. In exchange, AmeriGas unit holders would get 0.50 UGI common share and $7.63 in cash for each AmeriGas common unit held.
The consideration represents a 21.9% premium to AmeriGas' April 1 closing price.
