Ferrellgas Partners LP (NYSE: FGP) is buying Sable Environmental LLC for $124.7 million.
Sable provides fluid logistics services, including salt water disposal, in the Eagle Ford shale region of south Texas.
The buyer, headquartered in Overland Park, Kansas, provides propane and midstream energy services to energy companies in the U.S. "We are extremely pleased to announce yet another step toward strategic diversification and growth of cash flows by targeting complementary assets outside the propane space," says Ferrellgas CEO Steve Wambold.
Ferrellgas plans to make add-on acquisitions to Sable, the company says in a statement.
Evercore Partners is Ferrellgas' financial adviser.
As the U.S. energy sector has heated up, companies have been looking to purchase groups that provide services to oil and gas businesses. Private equity firm Bregal Partners LP formed a company to dispose of wastewater assets for oil and gas companies, and in January, added on assets from Ceiba Energy Services Inc. and Phyllis Disposal Ltd. Bregal made its first acquisition in the space in November with the purchase of Aqua Terra Water Management LP.