Chesapeake Utilities Corporation CPK said its subsidiary, Sharp Energy, has acquired the propane operating assets of J.T. Lee and Son's in Cape Fear, North Carolina. The financial terms of the deal were not disclosed.
The acquisition will help Sharp Energy expand its customer base in North Carolina, including adding approximately 3,000 customers and distribution of about 800,000 gallons of propane annually.
The deal also includes a bulk plant with 60,000 gallons of propane storage, providing the company with additional storage capacity and overlapping delivery territories.
"J.T. Lee, which has served customers for more than 60 years, will increase our North Carolina footprint and provide cost savings and other synergistic benefits as a result of the expanded Wilmington service area," said Andy Hesson, vice president, Sharp Energy.
Sharp Energy distributes propane to residential, commercial and industrial customers in Pennsylvania, Maryland, Delaware, Virginia, North Carolina, South Carolina and Florida.
Price Action: CPK shares closed higher by 1.99% at $104.42 on Tuesday.
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