Star Group, L.P. Announces Agreement to Acquire Home Energy Distributor for $68 Million

Star Group is acquiring a home energy distributor for $68 million, strengthening its market position. Closure expected in 45 days.

Quiver AI Summary

Star Group, L.P. has announced a definitive agreement to acquire a home energy distributor for approximately $68 million, expected to close within 45 days, pending regulatory approval. This acquisition aims to enhance Star's competitive position and is seen as a beneficial investment for its shareholders. Jeff Woosnam, the company’s President and CEO, expressed optimism about the purchase, which aligns with Star's strategy of offering a range of heating products and services primarily to residential and commercial customers in the Northeast and Mid-Atlantic regions of the U.S. The company also highlighted potential risks and uncertainties that could affect future operations and results in its press release.

Potential Positives

• Star Group, L.P. has entered into a definitive agreement to purchase a well-established home energy distributor for approximately $68 million, which is expected to enhance its market presence and competitive position.
• The acquisition is aligned with Star Group's existing operations, indicating a strategic expansion within its current footprint and potential for operational synergies.
• This investment demonstrates the company’s commitment to growth and support for shareholder value, as stated by the President and CEO.

Potential Negatives

• Potential risks and uncertainties related to the acquisition, including compliance with governmental reporting requirements and the various challenges outlined in the forward-looking statements, could impact the company's operational stability and financial performance.
• The lack of disclosure regarding additional terms of the acquisition may raise concerns about transparency and the strategic rationale behind the deal.
• The extensive list of risks associated with the company's operations and market conditions, as highlighted in the forward-looking statements, could lead to investor apprehension about future growth and profitability.

FAQ

What recent acquisition did Star Group announce?

Star Group announced it has entered into an agreement to acquire a home energy distributor for approximately $68 million.

Who is the CEO of Star Group?

Jeff Woosnam is the President and Chief Executive Officer of Star Group, L.P.

When does Star Group anticipate closing the transaction?

The company anticipates closing the transaction within the next 45 days, subject to government requirements.

What services does Star Group provide?

Star Group specializes in home heating products and services, including heating oil, propane, and air conditioning equipment.

Where does Star Group operate?

Star Group serves customers primarily in the northern and eastern states of the Northeast and Mid-Atlantic U.S. regions.

Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.

$SGU Hedge Fund Activity

We have seen 25 institutional investors add shares of $SGU stock to their portfolio, and 31 decrease their positions in their most recent quarter.

Here are some of the largest recent moves:

• WELLS FARGO & COMPANY/MN removed 116,872 shares (-56.5%) from their portfolio in Q3 2024
• STATE STREET CORP removed 67,617 shares (-100.0%) from their portfolio in Q2 2024
• JPMORGAN CHASE & CO added 66,806 shares (+12.0%) to their portfolio in Q3 2024
• SWISS NATIONAL BANK removed 59,703 shares (-100.0%) from their portfolio in Q2 2024
• UBS ASSET MANAGEMENT AMERICAS LLC removed 55,938 shares (-100.0%) from their portfolio in Q2 2024
• CITADEL ADVISORS LLC removed 51,210 shares (-44.9%) from their portfolio in Q3 2024
• VICTORY CAPITAL MANAGEMENT INC added 48,224 shares (+inf%) to their portfolio in Q3 2024

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Full Release

STAMFORD, Conn., Dec. 12, 2024 (GLOBE NEWSWIRE) -- Star Group, L.P. (the "Company" or "Star") (NYSE:SGU), a home energy distributor and services provider, today announced it has entered into a definitive agreement to purchase a home energy distributor, located within the Company’s existing operating footprint, for approximately $68 million before working capital adjustments. Star anticipates closing on the transaction within the next 45 days, subject to compliance with governmental reporting requirements. Additional terms were not disclosed.

“I am pleased to announce that we have entered into a definitive agreement to purchase a well-established home energy distributor that is located within our existing operating footprint,” said Jeff Woosnam, Star Group’s President and Chief Executive Officer. “This business is expected to further strengthen our competitive position and be a sound investment for Star Group and our shareholders.”

About Star Group, L.P.



Star Group, L.P. is a full service provider specializing in the sale of home heating products and services to residential and commercial customers to heat their homes and buildings. The Company also sells and services heating and air conditioning equipment to its home heating oil and propane customers and, to a lesser extent, provides these offerings to customers outside of its home heating oil and propane customer base. Star also sells diesel, gasoline and home heating oil on a delivery only basis. We believe Star is the nation's largest retail distributor of home heating oil based upon sales volume. Including its propane locations, Star serves customers in the more northern and eastern states within the Northeast and Mid-Atlantic U.S. regions. Additional information is available by obtaining the Company's SEC filings at www.sec.gov and by visiting Star's website at www.stargrouplp.com, where unit holders may request a hard copy of Star’s complete audited financial statements free of charge.

Forward Looking Information



This news release includes "forward-looking statements" which represent the Company’s expectations or beliefs concerning future events that involve risks and uncertainties, including the impact of geopolitical events on wholesale product cost volatility, the price and supply of the products that we sell, our ability to purchase sufficient quantities of product to meet our customer’s needs, rapid increases in levels of inflation, the consumption patterns of our customers, our ability to obtain satisfactory gross profit margins, the effect of weather conditions on our financial performance, our ability to obtain new customers and retain existing customers, our ability to make strategic acquisitions, the impact of litigation, natural gas conversions and electrification of heating systems, pandemic and future global health pandemics, recessionary economic conditions, future union relations and the outcome of current and future union negotiations, the impact of current and future governmental regulations, including climate change, environmental, health, and safety regulations, the ability to attract and retain employees, customer credit worthiness, counterparty credit worthiness, marketing plans, cyber-attacks, global supply chain issues, labor shortages and new technology, including alternative methods for heating and cooling residences. All statements other than statements of historical facts included in this Report including, without limitation, the statements under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and elsewhere herein, are forward-looking statements. Without limiting the foregoing, the words “believe,” “anticipate,” “plan,” “expect,” “seek,” “estimate,” and similar expressions are intended to identify forward-looking statements. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will prove to be correct. Actual results may differ materially from those projected as a result of certain risks and uncertainties. These risks and uncertainties include, but are not limited to, those set forth under the heading "Risk Factors" and "Business Strategy" in our Annual Report on Form 10-K (the "Form 10-K") for the fiscal year ended September 30, 2024. Important factors that could cause actual results to differ materially from the Company’s expectations ("Cautionary Statements") are disclosed in this news release and in the Company’s Form 10-K and our Quarterly Reports on Form 10-Q. All subsequent written and oral forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the Cautionary Statements. Unless otherwise required by law, the Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise after the date of this news release.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.