Pritzker Private Capital explores $1bn-plus sale of propane distributor EDP

Pritzker Private Capital is exploring a potential sale of Energy Distribution Partners, a propane and light fuels distributor that could command a valuation of more than $1bn, according to a report by Bloomberg citing unnamed people familiar with the matter.
Discussions are ongoing and no final decision has been made, with the sponsor weighing its options for the business. A group of private credit lenders is considering providing financing for a potential transaction, although prospective buyers could also look to the syndicated loan market to fund an acquisition.
Pritzker Private Capital reportedly declined to comment, while Energy Distribution Partners reportedly did not respond to requests for comment.
The Chicago-based private equity firm, backed by the Pritzker family, invested in EDP through a 2020 recapitalisation alongside Duchossois Capital Management and existing backer Concentric Equity Partners.
Since that investment, EDP has expanded its footprint through a series of acquisitions in the fragmented propane distribution market. Its most recently disclosed deal was the purchase of Connecticut-based Hocon Gas in February, adding propane, fuel oil and related services to EDP’s operations.
The potential sale would give Pritzker an opportunity to monetise an investment that has been expanded through a buy-and-build strategy, while demand for private credit could provide potential buyers with an alternative source of acquisition financing.
Pritzker raised $3.4bn for its fourth investment fund last year and focuses on middle-market businesses across North America, with particular emphasis on manufacturing products and services.