Written on: December 16, 2021 by ICM
Chesapeake Utilities Corp. announced its propane subsidiary, Sharp Energy, has acquired the propane operating assets of Diversified Energy Co. Through this acquisition, the Chesapeake Utilities expands its operating footprint into North Carolina and South Carolina. Terms of the deal were not disclosed.
“Sharp Energy has driven significant growth for Chesapeake Utilities as a market leader in residential, commercial, wholesale and AutoGas propane services. Propane remains a core part of our unregulated energy operations given its high demand, especially in more rural areas where natural gas pipelines cannot or have not yet reached,” said Jeff Householder, President & CEO, Chesapeake Utilities. “The addition of Diversified Energy’s propane business expands Sharp’s footprint into the Carolinas, adding to our growing presence along the East Coast. We are pleased to welcome our new employees to the Chesapeake Utilities family and are committed to serving Sharp’s new customers with a continued commitment to excellence, integrity and care.”
“We believe the two organizations align culturally, and we are excited to integrate the Diversified Energy business into Sharp Energy,” said Andy Hesson, VP of Sharp Energy. “With this transaction, our propane business will add approximately 19,000 residential, commercial and agricultural customers, along with distribution of approximately 10 million gallons of propane annually.”
The deal is expected to be accretive to Chesapeake Utilities’ 2022 earnings, adding approximately $11.3 million in gross margin for 2022.