Penn Central Says It Will Sell Retail Propane Business

Penn Central Corp. announced Tuesday that it has agreed to sell its retail propane distribution business, operated by Buckeye Gas Products, to a private company for $415 million.

Buckeye Partners L.P., a limited partnership formed by Penn Central, will purchase Penn Central’s refined products and crude oil pipeline business after filing with the Securities and Exchange Commission for the public offering of about $170 million of limited partnership interests, Penn Central said.

After the transaction, Penn Central would retain a 1% general interest in Buckeye Partners L.P.

The deal, which is expected to close before the end of the year, is subject to the signing of a definitive agreement, completion of the buyer’s investigation of the business and regulatory filings.