ThompsonGas LLC has acquired the propane distribution business of Midwestern Propane Gas Co., 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, Ill. 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, passed away. Darrell continued to grow the company, until his 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 Capital Markets Group Inc. 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.
“Matrix was highly recommended by a friend who sold his propane business using Matrix as his investment banker,” said Brodwate. “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.”
Founded in 1988, Matrix is an independent, advisory focused, privately-held investment bank headquartered in Richmond, Va., with additional offices in Baltimore and Chicago.