Platinum Equity has agreed to acquire EDP, a distributor of propane and light fuels to residential, commercial and agricultural customers across 24 states.
EDP, short for Energy Distribution Partners, delivers propane by truck to tanks at its customers’ homes, farms and businesses and provides related services. Propane is a fuel stored as a liquid under pressure, and it is widely used for heat, hot water and cooking where natural gas lines do not reach. EDP also distributes other light fuels.
Chicago-headquartered EDP was founded in 2012 by Thomas Knauff, a propane industry veteran. In October 2020, Pritzker Private Capital recapitalized EDP, investing alongside Concentric Equity Partners and Duchossois Capital Management in partnership with management. At the time, EDP had 26 branch locations in 10 states and served more than 120,000 customers.
EDP has grown by buying local, often family-owned propane dealers and keeping their brand names and local managers. According to PPC, EDP more than tripled its EBITDA during its six-year investment term.
Today, EDP, led by CEO Kevin Pollack, serves more than 200,000 customers through more than 60 locations in 24 states. The company has more than 700 employees and LP Gas Magazine named it to its list of the top 10 propane marketers in 2022, 2023 and 2024.
[caption id="attachment_242443" align="alignright" width="120"] Kevin Pollack[/caption]
“Over the past several years, EDP has built a differentiated platform by combining the capabilities of a scaled national organization with the entrepreneurial spirit and customer focus of our local operating companies,” said Mr. Pollack. “Platinum Equity shares our long-term vision for the business and brings substantial operational expertise, acquisition experience and financial resources that will help us continue executing our growth strategy.”
US fuel dealers, the businesses that deliver heating oil, propane and other fuels directly to homes and commercial sites, will generate about $54.1 billion of revenue in 2026, up 7.5% from 2025, according to IBISWorld. The research firm puts the industry’s annual growth at 5.4% from 2021 to 2026. Retail propane delivery is a local business. Customers buy from a dealer whose trucks can reach them on short notice in winter, and many of those dealers are small, family-owned companies with a single town or county as their market. That leaves a long list of potential sellers for a buyer that can offer an owner a succession plan and keep the local name on the truck.
[caption id="attachment_242448" align="alignright" width="120"] David Glatt[/caption]
“EDP has proven to be an effective platform for integrating acquisitions while continuing to deliver strong service levels and operational performance across its network,” said David Glatt, a managing director at Platinum Equity. “We see opportunities to support the company's ongoing organic growth initiatives, invest in its operating capabilities and technology infrastructure, and pursue additional acquisitions in what remains a highly fragmented market.”
Platinum Equity acquires and operates companies across a range of markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology and telecommunications. Platinum is investing from Platinum Equity Capital Partners VI LP, which closed in the first half of 2024 with $12.4 billion of capital, above its $12 billion target and ahead of the $10 billion its fifth fund raised in 2020.
[caption id="attachment_242444" align="alignright" width="120"] Louis Samson[/caption]
“Propane continues to play a vital role in meeting the energy needs of residential, commercial and agricultural customers across the country, supported by long-term demand for safe, reliable and locally delivered energy solutions,” said Louis Samson, a co-president of Platinum Equity. “EDP has built an exceptional business with an attractive combination of scale, recurring customer demand and strong local market positions. The company operates in a resilient industry, provides an essential service and has assembled a high-quality team. We are excited to partner with management and invest behind the next chapter of growth.”
Beverly Hills-headquartered Platinum was founded in 1995 by Tom Gores, manages about $48 billion and owns about 60 operating companies. The firm has completed more than 550 acquisitions over the past 30 years.
“We are proud to have supported Tom and the EDP leadership team over the past six years as they expanded their operational footprint and transitioned day-to-day leadership to the next generation,” said Eric Kieras, Investment Partner at PPC. “EDP is a terrific business, and we are confident the company is well positioned for continued success with its new partners.”
Chicago-based PPC acquires North America-based middle-market companies that have enterprise values between $200 million and $2 billion and EBITDA of more than $15 million. Sectors of interest include manufactured products and services. The firm targets equity investments between $100 million and $400 million, with the ability to invest up to $750 million per transaction.
J.P. Morgan and Baird were the financial advisors to Platinum Equity. J.P. Morgan, Guggenheim, Oaktree and Fifth Third are arranging the debt financing.
EDP, short for Energy Distribution Partners, delivers propane by truck to tanks at its customers’ homes, farms and businesses and provides related services. Propane is a fuel stored as a liquid under pressure, and it is widely used for heat, hot water and cooking where natural gas lines do not reach. EDP also distributes other light fuels.
Chicago-headquartered EDP was founded in 2012 by Thomas Knauff, a propane industry veteran. In October 2020, Pritzker Private Capital recapitalized EDP, investing alongside Concentric Equity Partners and Duchossois Capital Management in partnership with management. At the time, EDP had 26 branch locations in 10 states and served more than 120,000 customers.
EDP has grown by buying local, often family-owned propane dealers and keeping their brand names and local managers. According to PPC, EDP more than tripled its EBITDA during its six-year investment term.
Today, EDP, led by CEO Kevin Pollack, serves more than 200,000 customers through more than 60 locations in 24 states. The company has more than 700 employees and LP Gas Magazine named it to its list of the top 10 propane marketers in 2022, 2023 and 2024.
[caption id="attachment_242443" align="alignright" width="120"] Kevin Pollack[/caption]
“Over the past several years, EDP has built a differentiated platform by combining the capabilities of a scaled national organization with the entrepreneurial spirit and customer focus of our local operating companies,” said Mr. Pollack. “Platinum Equity shares our long-term vision for the business and brings substantial operational expertise, acquisition experience and financial resources that will help us continue executing our growth strategy.”
US fuel dealers, the businesses that deliver heating oil, propane and other fuels directly to homes and commercial sites, will generate about $54.1 billion of revenue in 2026, up 7.5% from 2025, according to IBISWorld. The research firm puts the industry’s annual growth at 5.4% from 2021 to 2026. Retail propane delivery is a local business. Customers buy from a dealer whose trucks can reach them on short notice in winter, and many of those dealers are small, family-owned companies with a single town or county as their market. That leaves a long list of potential sellers for a buyer that can offer an owner a succession plan and keep the local name on the truck.
[caption id="attachment_242448" align="alignright" width="120"] David Glatt[/caption]
“EDP has proven to be an effective platform for integrating acquisitions while continuing to deliver strong service levels and operational performance across its network,” said David Glatt, a managing director at Platinum Equity. “We see opportunities to support the company's ongoing organic growth initiatives, invest in its operating capabilities and technology infrastructure, and pursue additional acquisitions in what remains a highly fragmented market.”
Platinum Equity acquires and operates companies across a range of markets, including manufacturing, distribution, transportation and logistics, equipment rental, metals services, media and entertainment, technology and telecommunications. Platinum is investing from Platinum Equity Capital Partners VI LP, which closed in the first half of 2024 with $12.4 billion of capital, above its $12 billion target and ahead of the $10 billion its fifth fund raised in 2020.
[caption id="attachment_242444" align="alignright" width="120"] Louis Samson[/caption]
“Propane continues to play a vital role in meeting the energy needs of residential, commercial and agricultural customers across the country, supported by long-term demand for safe, reliable and locally delivered energy solutions,” said Louis Samson, a co-president of Platinum Equity. “EDP has built an exceptional business with an attractive combination of scale, recurring customer demand and strong local market positions. The company operates in a resilient industry, provides an essential service and has assembled a high-quality team. We are excited to partner with management and invest behind the next chapter of growth.”
Beverly Hills-headquartered Platinum was founded in 1995 by Tom Gores, manages about $48 billion and owns about 60 operating companies. The firm has completed more than 550 acquisitions over the past 30 years.
“We are proud to have supported Tom and the EDP leadership team over the past six years as they expanded their operational footprint and transitioned day-to-day leadership to the next generation,” said Eric Kieras, Investment Partner at PPC. “EDP is a terrific business, and we are confident the company is well positioned for continued success with its new partners.”
Chicago-based PPC acquires North America-based middle-market companies that have enterprise values between $200 million and $2 billion and EBITDA of more than $15 million. Sectors of interest include manufactured products and services. The firm targets equity investments between $100 million and $400 million, with the ability to invest up to $750 million per transaction.
J.P. Morgan and Baird were the financial advisors to Platinum Equity. J.P. Morgan, Guggenheim, Oaktree and Fifth Third are arranging the debt financing.
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