Fort Point Capital launches US Propane with two propane distributor acquisitions

Fort Point Capital has launched US Propane, a new propane distribution platform, through the simultaneous acquisitions of Atlanta Propane Exchange and North Carolina Propane Exchange. The transactions give the platform an initial presence in Georgia and North Carolina, with plans to add more regional businesses through partnerships with locally owned propane companies.

Atlanta Propane Exchange and North Carolina Propane Exchange run forklift cylinder exchange programs, supplying filled propane cylinders to businesses with forklift fleets and collecting empty units on recurring deliveries. US Propane is headquartered in Auburn, Georgia, and is principally owned by its management team and Fort Point Capital. Fort Point is a Boston firm founded in 2011 that invests through FPC Small Cap Fund III.

James Watson, who has more than 30 years of propane industry experience, will lead US Propane as CEO. Fort Point partner Paul Lipson said the businesses have well-established customer relationships. Akerman acted as legal counsel to Fort Point and US Propane. O2 Sponsor Finance and GMB Capital Partners provided debt financing for the initial transactions.