Investment Thesis
AmeriGas Partners (APU) saw its top and bottom lines declined in its Q2 F2019 despite a colder-than-normal weather pattern. The company’s growth outlook remains poor as propane usage gradually declines in the U.S. In addition, its leveraged balance sheet will continue to limit the company's ability to grow by acquisition. Therefore, the current offer by UGI Corporation (UGI) presents a good opportunity for AmeriGas shareholders to exit the investment. With the offer, AmeriGas shareholders can receive a slight premium to its peers. Given the company’s negative growth outlook, we