Situation
Eastern Sierra Propane (“ESP” or the “Company”), headquartered in Bishop, California, is one of the premier propane retailers in the Eastern Sierra Nevada mountain range, serving both residential and commercial customers.

The Company was founded in 1993 in Bishop, CA by Tom Sigler and Rudy Forster. Initially, Eastern Sierra Propane was run out of Tom Sigler’s house, and propane storage was obtained by using a 12,000-gallon tank at a customer’s location in exchange for installing vapor meters on his gas dryers.

Tom Sigler subsequently acquired Rudy Forster’s 50% ownership interest, and Tom along with his son, Jason Sigler who joined in 1998, have significantly grown the Company over the last two plus decades.

Matrix was retained to perform a valuation of the Company and to advise on a sale process. Ultimately, the shareholders decided to sell the business to diversify their wealth and focus on other ventures.

Objective
To customize, execute, and complete a confidential sale process in a way that would allow the shareholders to realize maximum after-tax value upon the sale of the Company.

Solution
Matrix provided ESP with merger and acquisition advisory services, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The sale process included a buyer pool of privately owned, regional and national propane marketers, large, public companies, and financial sponsors.

Multiple competitive offers were received for ESP, and Ferrellgas Partners, L.P. (OTC: FGPR) (“Ferrellgas”) was selected as the acquirer.

Matrix assisted in the negotiation of the asset purchase agreement and coordinated the due diligence and closing process.

The transaction with Ferrellgas closed in January 2024.