Siouxland propane business sold to Star Energy

2012-12-03T11:47:00Z 2012-12-03T17:24:05Z Siouxland propane business sold to Star EnergyDAVE DREESZEN Sioux City Journal
December 03, 2012 11:47 am  • 

IRETON, Iowa | Star Energy has acquired the propane and heating and cooling division of Siouxland Propane.

Terms of the deal, which took effect Saturday and was announced Monday, were not disclosed.

Siouxland Propane, a second-generation family business based in Ireton, Iowa, will continue to operate its lawn and garden division, which sells John Deere, Country Clipper and Echo branded equipment and supplies, at its same location at 212 Main St.

Siouxland Propane has nearly 5,000 residential and commercial propane customers in northwest Iowa and southeast South Dakota. The service territory includes areas around Sioux City where natural gas is not available.

The 12 Siouxland Propane employees have been retained by Star Energy, which also acquired Siouxland Propane's satellite stores in Akron, Iowa, and Centerville, S.D. Star Energy also will have its own office at 109 Main St. in Ireton.

"We have those same people serving those same customers," Star Energy general manager Dave Brecher said in a conference call Monday. "The message is same people, same service, more options."

"It's like a changing of the guard," Siouxland Propane President Scott Vreeman added.

Besides propane, Star Energy also offers customers other products that include refined fuel and lubricants, Brecher said.

Star Energy, based in Manson, Iowa, has 38 propane facilities and more than 12,000 customers in western Iowa, with its territory generally west of Interstate 35 and north of Interstate 80. The Siouxland Propane deal expands the company's footprint into South Dakota for the first time, Brecher said.

Since 2007, Star Energy has been a wholly-owned subsidiary of Growmark Inc., a regional agribusiness cooperative with operations throughout the Midwest.

Siouxland Propane was started in the 1950s by Vreeman's father, Bud, who is today 87. His sons, Greg and Scott, today run the business, which grew over the years, and exanded its territory. With no third generation waiting in the wings to take over, the family decided to sell its propane and HVAC business. Scott Vreeman said the company handpicked Star Energy so the change for its loyal customers would be as seamless as possible.





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