Acquisitions and dispositions

12 Months Ended

Jul. 31, 2025

Acquisitions and dispositions

Acquisitions and dispositions

C.        Acquisitions and dispositions

Acquisitions

Business combinations are accounted for under the acquisition method of accounting and the assets acquired and liabilities assumed are recorded at their estimated fair market values as of the acquisition dates. The results of operations are included in the consolidated statements of operations from the date of acquisition. The pro forma effect of these transactions was not material to Ferrellgas’ consolidated balance sheets or results of operations.

Propane operations and related equipment sales

In addition to a $0.2 million measurement period adjustment related to Eastern Sierra Propane, Ferrellgas acquired propane distribution assets of one independent distributor, with a value of $4.2 million in the following transaction during fiscal 2025:

● Kilhoffer Propane Co., based in Oklahoma, acquired in October 2024.

During fiscal 2024, Ferrellgas acquired propane distribution assets of one independent distributor, with a value of $18.1 million in the following transaction:

● Eastern Sierra Propane, based in California, acquired in January 2024.

During fiscal 2023, Ferrellgas acquired propane distribution assets, primarily of four independent distributors, with an aggregate value of $27.6 million in the following transactions:

● Brown’s Gas, based in California, acquired in August 2022;

● Dubben Gas Service, based in New York, acquired in October 2022;

● Rez-Bear Propane, based in New York, acquired in November 2022; and

● Apollo Propane, Inc., based in Ohio, acquired in March 2023.

These acquisitions were funded as follows on their dates of acquisition, including any adjustments identified during the measurement period:

	For the year ended July 31,
	2025		2024		2023
Cash payments, net of cash acquired	$	3,756	$	16,499	$	24,123
Issuance of liabilities and other costs and considerations		635		1,585		3,435
Aggregate fair value of transactions	$	4,391	$	18,084	$	27,558

The aggregate fair values, for the acquisitions in propane operations and related equipment sales reporting segment, were allocated as follows, including any adjustments identified during the measurement period:

	For the year ended July 31,
	2025		2024		2023
Customer tanks, buildings, land and other	$	2,024	$	3,263	$	10,027
Goodwill		149		—		—
Customer lists		1,828		14,564		15,938
Non-compete agreements		390		257		1,593
Aggregate fair value of net assets acquired	$	4,391	$	18,084	$	27,558

The estimated fair values and useful lives of assets acquired during fiscal 2025 are based on an internal valuation, and we do not anticipate any further adjustments. The estimated fair values and useful lives of assets acquired during fiscal 2024 are based on internal valuations and included only minor adjustments during the 12-month period after the date of acquisition. Due to the immateriality of these adjustments, Ferrellgas did not retrospectively adjust the consolidated statements of operations for those measurement period adjustments.

Dispositions

We incurred a loss on asset sales and disposals of $3.0 million, $2.8 million and $5.7 million in fiscal 2025, 2024 and 2023, respectively.