Ara Partners Group, an alternative asset manager focused on the industrial, chemicals & materials and energy sectors, has made a majority investment in Centric Gas Services, (Centric), a local gas distribution platform headquartered in Magnolia, Texas.
Centric operates four local gas distribution companies and three gas transmission pipeline companies in high-growth areas in Texas. The Barnwell family, which in 1993 founded entities that Centric owns, will retain a substantial minority ownership position in Centric.
“Our partnership with Ara Partners is an important milestone for Centric,” says Robert S Barnwell IV, President of Centric. “This investment enables Centric to continue executing on its ambitious growth plans to expand its customer base while ensuring the continuity of our employees, management team, regulatory processes, and adherence to what we believe to be the highest safety standards in our industry.”
Robert “Barney” Barnwell III, Chairman of Centric, adds: “We are excited to partner with Ara Partners, a forward-thinking investor with substantial experience managing successful private equity investments. Centric will benefit from enhanced access to capital while continuing to provide the same safe, reliable and cost-effective natural gas service to our customers that we have for decades.”
Troy Thacker, Managing Partner at Ara Partners, says: “We are thrilled to realise this investment in Centric in partnership with the Barnwell family, who have built an enviable business over the past 25 years. Centric’s business fits perfectly within Ara Partner’s portfolio of forward-looking, sustainable investments, and we look forward to being a source of strategic support and capital for Centric as they execute on their expansion plans.”
James Wang, Principal at Ara Partners, adds: “Centric is a strong company that is well-positioned to capture significant market share by bringing affordable natural gas to growing demand centres in Texas. Natural gas is more cost and carbon footprint efficient than other forms of energy for homes and commercial businesses, and we are delighted to work alongside Centric to capitalise on attractive opportunities in this area.”
Locke Lorde LLP served as legal counsel to Centric and White & Case LLP served as legal counsel to Ara Partners in connection with the transaction.
