On July 20, 2016, Gibson Energy announced that it was exploring a potential sale of its industrial propane business. In 2014 and 2015, respectively, the Industrial Propane business generated EBITDA of $43 and $41 mm. We expect a run rate of $40-$47 mm in EBITDA from 2016- 2018. Looking at comparables Amerigas, Ferrelgas and Parkland (PKI-T), we believe a ~10x EV/EBITDA valuation would be appropriate, leading us to value this business at $400-$500 mm, which would provide Gibson with sufficient
21 Jul 2016
Exploring Potential Sale of Industrial Propane Business
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Exploring Potential Sale of Industrial Propane Business
Gibson Energy Inc. (GEI:TSE) | 0 0 1.5% | Mkt Cap: 2,392m
- Published:
21 Jul 2016 -
Author:
Steven I. Paget -
Pages:
5
On July 20, 2016, Gibson Energy announced that it was exploring a potential sale of its industrial propane business. In 2014 and 2015, respectively, the Industrial Propane business generated EBITDA of $43 and $41 mm. We expect a run rate of $40-$47 mm in EBITDA from 2016- 2018. Looking at comparables Amerigas, Ferrelgas and Parkland (PKI-T), we believe a ~10x EV/EBITDA valuation would be appropriate, leading us to value this business at $400-$500 mm, which would provide Gibson with sufficient