Ascendant Group To Sell Bermuda Gas To Rubis

April 13, 2016

Ascendant Group Limited has agreed to sell its propane distribution and commercial service company Bermuda Gas to Rubis for a consideration of $[17.7] million plus final closing adjustments to reflect the working capital in the business.

Under the agreement, all 18 Bermuda Gas employees will retain employment in Bermuda Gas.

A spokesperson said, “In June 2015, Bermuda Gas exited the retail appliance sales, parts and repair business to focus on competitiveness in its core propane distribution market.”

Ascendant Group President and Chief Executive Officer Walter Higgins said, “While Ascendant was not actively seeking to exit the propane distribution business, the sale of Bermuda Gas to a well respected, experienced local company at an attractive valuation provides an opportunity for the company to reserve capital for anticipated new energy infrastructure investment and other corporate needs.”

“As Bermuda Gas is transitioning to Rubis, the business will retain a presence at its present location at 27 Serpentine Road. Bermuda Gas will work with Rubis to ensure there is a seamless transition for customers.”

Graham Redford, Managing Director of RUBiS Energy Bermuda Ltd, says: “The Bermuda Gas acquisition represents a strategic expansion of RUBiS’ existing LPG business in Bermuda. RUBiS is currently the Island’s leading importer of LPG and the integration of the supply and distribution chains will allow us to expand infrastructure capabilities to better serve our customers.

“When we approached the Ascendant Group, and started discussions, one of the critical components that we immediately identified was that we had to ensure that no jobs would be lost as a result of the acquisition. Subsequently, I am happy to announce today that all 18 Bermuda Gas employees will remain with the Company.

“The second critical component was that we had to be able to honour all existing supply agreements. Again, I can assure all of Bermuda Gas’ customers that existing supply agreements and equipment warranties are secure.”

Mr. Redford continued: “One of the key advantages of this acquisition to our staff and customers, is being able to combine the knowledge and expertise of RUBiS’ global LPG operations with a company that understands the complexities of the local business environment and is 100% staffed by Bermudians.

RUBiS’ mission is to consistently, safely and effectively deliver customer-driven quality energy solutions for Bermuda. This acquisition certainly allows us to continue to live up to our mission statement as it allows us to strengthen our purchasing power, expand our service capabilities, improve our resource utilisation, and reduce our procurement and administrative burdens in the retail and commercial business segments.

But most importantly, it also enables us to provide the greatest value to our existing, and future, customers and it will allow us to provide Bermuda greater stability in the existing commodity environment.”

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Comments (8)

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  1. Lualaba says:

    I think you will find that RUBIS is a French company.!!!

  2. Mark Orchard says:

    A bold business move Rubis. Good luck !

    • Black Soil says:

      With Rubis not exactly swimming in the money these days, I bet BELCO sold that mistake for a song!!!! Nice work Rubis!! To be honest, BELCO should have never been allowed to buy Bda Gas.

  3. Paradise reclaimed says:

    Good luck Rubis, should be fairly easy to up Bermuda Gas’s game! Ascendant, funny name they chose …

  4. Coffee says:

    Start handing out your resumes, you’ll be glad you did it by Cup match .

  5. Stan Marshall says:

    Well done Rubis!! keep up the good work – hopes all goes well with the new venture.