Carmel, IN, September 20, 2022: Private equity firm CID Capital II, Inc. (“CID”), which recently closed its largest fund in the firm's history, is proud to announce the formation of a national propane distribution platform. Kansas City-based Lettermen's Energy Holdings ("Lettermen's") was created as a growth platform to serve residential and commercial customers nationwide in the highly fragmented liquid propane ("LP") gas space. Eric Bruun and Eric Derheimer lead the investment for CID.
Concurrent with the closing of CID's latest fund, Lettermen's completed the acquisition of Northbrook, IL-based Victory Propane in August 2022, representing the Company's ninth brand under the Lettermen's umbrella. Lettermen's has established a broad geographic base by acquiring providers like Victory that fit its strategic model of operational excellence, high-touch customer service, and aggressive pursuit of organic growth.
CID identified Lettermen's' deep operational experience in the propane industry and strong leadership team as key drivers for the investment. "Throughout the Company's leadership ranks, there are a rare combination of business acumen and day-to-day propane experience. Because of those capabilities, we are ideally suited to acquire smaller, single-site operating businesses, as well as, significant entities like Victory Propane," CID's Eric Bruun commented. "Simply put, we are incredibly excited about the future in our partnership with Lettermen's."
Lettermen's is currently the 17th largest multi-state propane retailer in the United States. The Victory Propane acquisition adds to the growing family of leading independent propane companies including Wolf River Propane (WI), Arrow Propane and Basin Propane (WA), Alpha Propane (MT), High Sierra Gas (CA, NV), Canyon State Propane (AZ), and Sagamore Gas & Appliance (IN).
Said Bruun, "Lettermen's is a compelling platform. Our strategy is to continue to scale and execute add-on acquisitions while building one of the leading propane distribution companies in the United States."
Derheimer commented, "We look forward to working with propane operators and their advisers should they be considering a sale process. Our experience in executing these transactions and the referrals we have earned along the way will stand out in this market."
About Lettermen's Energy Holdings
Headquartered in Kansas City, Lettermen's Energy Holdings has become one of the leading consolidators in the American propane industry. Lettermen's offers service to more than 30,000 residential, industrial/commercial, agricultural, and autogas customers in fifteen states. More information is available at www.lettermensenergy.com.