Latham and V&E Lead $1.8 billion Propane Deal

By Mark Curriden

New Jersey-based Suburban Propane Partners announced Thursday that it is purchasing the retail propane operations of Kansas-based Inergy for $1.8 billion.

But the two companies turned to the expertise of energy lawyers in Texas to handle the transaction.

Latham & Watkins corporate partner Sean Wheeler in Houston is advising Suburban. Vinson & Elkins capital markets partner Gillian Hobson of Houston represents Inergy.

This transaction, which is expected to close in the fourth quarter, doubles Suburban’s customer base and make it one of the top propane retailers in the United States.

According to Reuters, the Suburban – Inergy deal is the second significant M&A transaction in the U.S. propane industry during the past seven months. AmeriGas Partners paid $2.8 billion last fall to purchase Energy Transfer Partners’ propane business. V&E also represented ETP in that transaction.

Propane is increasing used to heat houses and offices.

Suburban is paying Inergy $200 million in cash, $600 million in new units and $1 billion through the issuance of senior notes.

Wheeler led a Latham team that included Houston corporate partner Michael Dillard, Houston tax partner Tim Fenn and Houston corporate associate Debbie Yee.

Hobson led the V&E team, which included Houston IP partner Peter Mims, Houston tax partner John Lynch, Houston M&A energy partner Robin Fredrickson, Houston complex commercial litigation partner Cathy Lewis, Houston employment law partner Sean Becker, and Dallas executive compensation and employee benefits partner Shane Tucker.

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