Jordan Knauff & Company Announces the Formation and Sponsorship of Energy Distribution Partners, LLC
As an outgrowth of its energy practice, middle-market investment bank Jordan Knauff & Company (JKC) is proud to announce the formation and sponsorship of Energy Distribution Partners, LLC. The purpose of the new company is to acquire, develop, and manage companies and assets in the petroleum midstream and downstream sectors in which the firm has expertise, with an intense focus on retail propane and natural gas liquids (NGL) midstream assets such as pipelines, storage facilities, and terminals.
Mr. Thomas E. Knauff, one of JKC’s founders and Managing Principals, will withdraw from investment banking duties with the firm in order to serve as Energy Distribution Partners’ full-time Chief Executive Officer. Previously, Mr. Knauff was a founder, President, and Chief Operating Officer of Propane Continental, Inc. and, concurrent with the management of JKC, the founding Chairman of Liberty Propane, LLC. The two successful companies closed a combined 60 acquisitions. Propane Continental was also active in the propane and natural gas midstream sectors.
JKC is raising private capital in connection with the formation of Energy Distribution Partners and serves as the new company’s investment bank of record. All of the assets to be acquired or developed by Energy Distribution Partners will be qualified for tax treatment under the rules for Master Limited Partnerships (MLPs). MLPs are publicly traded partnerships whose businesses operate in qualified natural resource segments such as pipelines, petroleum storage, terminals, exploration and production, timber, coal, and shipping. Energy Distribution Partners plans to evaluate the opportunity for an initial public offering under the MLP form when the company reaches the appropriate size and earnings level.
Largely as a result of the discovery and exploitation of shale formations in wide areas of the United States, the development of new petroleum midstream infrastructure is expected to continue to be substantial. ICF International, in a study for the Interstate Natural Gas Association of America, projects that over $300 billion will be spent in new natural gas and NGL infrastructure to construct pipeline, storage facilities, terminals, and other assets between 2011 and 2035. In addition, retail propane remains an attractive market for consolidation. The industry is highly fragmented, with over 4,000 independent companies, the largest ten of which represent no more than 45% of the industry. This ratio has held fairly steady for more than 30 years as the largest of the consolidators yield market share to smaller independents in multiple regions of the country.
About Jordan Knauff & Company
Jordan Knauff & Company is a knowledgeable and experienced provider of a comprehensive line of investment banking services to private companies. Services include mergers and acquisitions advisory, capital formation, and strategic financial advisory services to companies in a variety of industries. Typical transaction sizes range from $10 million to $300 million in total consideration.
To learn more about Jordan Knauff & Company, please visit www.jordanknauff.com or contact Mr. G. Cook Jordan, Jr. at 312-254-5901. For further information on Energy Distribution Partners, LLC contact Mr. Thomas E. Knauff at 312-254-5951.
This material was prepared for informational purposes only and does not constitute an offer to buy or sell any financial security or participate in any investment offering or deployment of capital.
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