Aberdeen, SD--Brick Propane announced today it has entered into a merger agreement with North Star Energy LLC. The family-owned propane company has been one of three partners of North Star Energy since its formation in 2002. Two area cooperatives, FEM Electric Association and North Central Farmers Elevator (NCFE), are the other business entities that comprise North Star Energy.
Brick Propanepresident Jerry Brick said this transaction provides a platform for the long-term advancement of propane services for his customers and employees. “We view this as a great opportunity for moving our company forward, and providing continuity for well over half a century of propane-related technology,” said Brick. “Through enhanced efficiencies, we’ll be able to continue to provide strong customer service and operational excellence by a staff that has always been committed to safe, reliable operations.”
Those efficiencies, said Brick, include capturing the synergies from duplicate delivery and service routes, and leveraging of operational costs. “Many times the trucks from these two companies would pass each other on the road, since we share similar territories. We look forward to passing on the benefits to customers, as we work together in a company well poised for the future.”
The company was founded in 1955 by Jerry Brick’s parents, Norman and Evelyn Brick. Following their retirement, Brick and his wife, Susan, purchased the company’s stock in 1987. Today’s merger includes Brick Propane’s retail propane operation, its air-conditioning/heating (HVAC) solutions, and the fireplace service and installation business. Brick Transport, the transportation side of the company, is not part of the merger.
FEM general manager Scott Moore notes that the two energy companies already mirror each other with positive company cultures and service-centric relationships. “We share similar values of customer service, safety, and integrity in the communities we serve,” said Moore. “This will dovetail the transition, as we go forward with our number one goal of continuing to deliver the highest level of customer satisfaction with our propane energy products.”
The transaction becomes effective July 1. With its larger new footprint, North Star Energy will retail 10 million gallons of propane annually, to customers in North and South Dakota. The North Star Energy management team will include Terry Heinz, general manager, and Jerry Brick, propane operations. The company will have offices in Aberdeen, Britton, and Selby.
Acatalyst for the merger, says NCFE general manager Keith Hainy, has been the history of success by North Star Energy and its cooperative parents. “Our companies strategically complement each other, with a tradition of strong balance sheets and responsible growth. As a cooperative we are continuously looking for ways to better serve members. The customers of Brick Propane can be assured that North Star Energy will continue to be managed to deliver value and provide access to the latest energy solutions within the propane industry.”