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Denver Investment Firm Targets Midwest Propane Storage and Distribution

New entity Platform Fuels enters the propane distribution industry in a big way.


Denver, Colorado, USA – WEBWIRE

Platform Capital and its investors are banking on margin growth created through the consolidation of administrative functions, implementation of operational technology, leveraging increased propane purchasing volume, fortification of local leadership and implementation of strategic long term business development plans." - Jake Walker, Partner of Platform Capital LLC

With its recent acquisitions of six independent propane distribution companies in Oklahoma, Denver-based Platform Capital LLC quietly entered the propane distribution industry in a big way. The move comes as more consumers are buying propane for its economical, fuel efficient, eco-friendly traits and many family-owned propane storage and distribution companies are seeking a mutually beneficial exit strategy.
 
Capitalizing on these two merging market forces, Platform Fuels Distribution Holdings LLC [Platform Fuels] completed its initial investment in the business and associated real estate holdings of the following Oklahoma entities:
 
• Green’s Propane LLC – Wellston, OK
• Menz Propane – Union City, OK
• Dales’ Propane LLC – Clayton, OK
• Kiamichi LP Gas – Idabel, OK
• Ned Guest LP Gas OK – Valliant, OK
• McCurtain County Propane – Broken Bow, OK
 
While each company will retain its name and service personnel, Platform Fuels intends to grow the local brands through enhanced services, sales and customer relationships.
 
According to Platform Capital partner Jake Walker, the transaction and consolidation of these six entities represents over $10 million in revenue with strong EBITDA margins. Completing these initial investments catapulted Platform Fuels to the 11th largest single state independent retailer in the US, representing 5.75 million gallons of propane sold.
 
According to Walker, Platform Fuels will continue to focus on acquiring propane storage and delivery companies serving both residential and commercial customers in rural markets throughout the Central United States. “Platform Capital and its investors are banking on margin growth created through the consolidation of administrative functions, implementation of operational technology, leveraging increased propane purchasing volume, fortification of local leadership and implementation of strategic long term business development plans,” Walker said.
 
For more information, contact jake@platformcap.com .
 
About Platform Capital
Founded and managed by former business operators and turnaround professionals, Platform Capital understands that a disciplined approach to operational and financial management is imperative in successful investing. The Partners of Platform Capital have experience in a broad range of industries and a vast array of circumstances, including special situations, underperforming businesses, distressed assets, owner transitions and growth capital. www.platformcap.com.
 


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 Propane Storage
 Propane Distribution
 Propane Sales
 Business Acquisition
 Green Energy Investment


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