Matrix Announces the Successful Sale of Midwestern Propane Gas Co.
RICHMOND, VA / BALTIMORE, MD – August 6, 2020 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Midwestern Propane Gas Co. (“Midwestern Propane” or the “Company”) on the sale of its propane distribution business to ThompsonGas, LLC. Midwestern Propane is one of the largest independent propane retailers in its region, serving approximately 5,000 residential and commercial customers throughout Illinois and Missouri.
The Company was established in 1936 by A.J. and Martha Urban, who opened their first retail heating fuel location in Belleville, Illinois. The entrepreneurs originally sold butane throughout the state, which at the time was a new heating and cooking fuel. During the 1930s and 1940s, as the Company grew and fostered positive relationships with its customers, it eventually transitioned from selling butane to propane in the 1950s.
Darrell Urban, grandson of the original founders and third generation owner, took over operations in 1985. Under Darrell’s leadership, Midwestern Propane grew both organically and through a series of acquisitions. In total, Darrell and General Manager Ron Brodwater completed four acquisitions from 1995 to 2005. In 2014, Don Urban, Darrell’s brother and 50% partner, sadly passed away. Darrell continued to grow the Company, until his unfortunate passing in 2019, when Susan his wife became the primary shareholder. Midwestern Propane is now under the leadership of the Company’s President (and former long-time General Manager), Ron Brodwater.
Matrix provided merger and acquisition advisory services to Midwestern Propane, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale. The transaction was managed by Spencer Cavalier, Co-Head of Matrix’s Downstream Energy & Convenience Retail Group; Sean Dooley, Director; and John Mickelinc, Senior Analyst.
Ron Brodwater, President of Midwestern Propane, stated, “Matrix was highly recommended by a friend who sold his propane business using Matrix as his investment banker. Matrix exceeded my expectations. My sincere thanks to Spencer, Sean and John for their thorough 24/7 effort on behalf of the company and Susan Urban.”
Mr. Dooley added, “To advise on the sale of an 80-plus year old company that has been in the family for three generations was truly an honor. It has been a privilege to work with Ron and his team to successfully execute this transaction for the Urban family.”
Matthew Schneider, Derek Moore, and Robert Leible of Husch Blackwell LLP served as legal counsel for Midwestern Propane.