UGI Corporation announced that its subsidiary, Flaga GmbH, has acquired the liquefied petroleum gas (LPG) distribution business of Shell Gas Hungary Zrt.
Headquartered in Austria, Flaga distributes nearly 70 million gallons of LPG annually in Austria, the Czech Republic, Hungary, Poland, Romania, Slovakia and Switzerland. Shell Gas distributed approximately 27 million gallons of LPG in Hungary in 2009.
Terms of the transaction were not disclosed.
“This transaction represents an opportunity for UGI to expand its operations and footprint in a meaningful way in Hungary, a country in which we operate currently and a market that we view as attractive.," said Lon R. Greenberg, chairman and chief executive officer of UGI.
The buyer is a holding company with propane marketing, utility and energy marketing subsidiaries. Through subsidiaries, UGI owns 44% of AmeriGas Partners, L.P., the nation's largest retail propane marketer, and owns Antargaz, one of the largest LPG distributors in France. (BBJ)