Sprague Resources LP (NYES: SRLP) is paying $22 million for a natural gas and electricity marketing business.
The target, Eatontown, New Jersey-based Metromedia Gas & Power, markets natural gas and electricity to commercial, industrial and municipal customers in the northeast and Mid-Atlantic.
Sprague, headquartered in Portsmouth, New Hampshire, buys, stores, distributes and sells refined petroleum products and natural gas. The company also provides storage and handling services for other products. The acquisition allows Sprague to expand its geographic reach and strengthen its presence in the Northeast.
Other recent energy deals include Primoris Services Corp.’s (Nasdaq: PRIM) purchase of Ram-Fab LLC, which provides infrastructure services to the oil and gas industry, and Clayton Dubilier & Rice’s $600 million investment in energy-services company CHC Group Ltd. (NYSE: HELI).