Axel Johnson Inc. Agrees to Sell Controlling Interest in Sprague Resources LP to Hartree Partners, LP
Sprague is a 150-year old company and is one of the largest independent suppliers of energy products and related services in the Northeast. Since Axel Johnson acquired the company nearly 50 years ago, Sprague has thrived through varied market conditions and multiple energy transitions. In 2013, Sprague welcomed additional investors through an initial public offering as a master limited partnership, with Axel Johnson retaining both the general partner interest and a majority of the limited partner interests. Since the IPO, Sprague has invested over
“This change in ownership marks a significant point in our history,” said
Although Axel Johnson was not expressly seeking a sale of its interests in Sprague, the opportunity to pass the reins to Hartree, which has the expertise, commitment and capability to continue Sprague’s success into the future presented a compelling opportunity to support the company and the management team.
“A number of companies have approached us with interest in our ownership in the company over the past several years,” said
Hartree, founded in 1997, is a privately held energy and commodities firm with global reach. Hartree and its affiliates first invested in Sprague in 2019, and own over 13 percent of Sprague’s outstanding common units before the Transaction.
“Sprague is managed by an exceptional team with an outstanding track record of success. We look forward to partnering with the existing management to enhance and expand the company’s infrastructure and franchise. We intend to invest new capital into the platform, as Sprague looks to drive the Northeast’s transition to clean fuels,” stated
Forward Looking Statements
This press release may include forward-looking statements. These forward-looking statements involve risks and uncertainties. Forward-looking statements in this press release include statements relating to the proposed Transaction, the expected benefits of the Transaction, the timing of the closing thereof and other statements that are not historical facts. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements in Sprague's prospectus and SEC filings. Sprague undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release.
About Sprague Resources LP
Sprague Resources LP is a master limited partnership engaged in the purchase, storage, distribution and sale of refined petroleum products and natural gas. Sprague also provides storage and handling services for a broad range of materials. More information concerning Sprague can be found at www.spragueenergy.com.
Hartree is a well-established global merchant commodities firm concentrating in energy and its associated industries. Formed in 1997, the firm focuses on identifying value in the production, refinement, transportation and consumption of tradable commodities including: electric power, natural gas, natural gas liquids, refined products, crude oil, fuel oil, freight, metals, carbon and petrochemicals, among others. Hartree is jointly owned by its senior management and certain funds managed by
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Source: Sprague Resources LP