Investments in and Acquisition of Businesses

3 Months Ended

Dec. 25, 2021

Business Combinations [Abstract]

Investments in and Acquisition of Businesses

4. Investments in and Acquisition of Businesses

The Operating Partnership owns a 39% equity stake in Oberon Fuels, Inc. (“Oberon”) based in San Diego, California and also purchased certain secured convertible notes issued by Oberon.  Oberon, a development-stage producer of low carbon, renewable dimethyl ether (“rDME”) transportation fuel, is focused on the research and development of practical and affordable pathways to zero-emission transportation through its proprietary production process. Oberon's rDME fuel is a cost-effective, low-carbon, zero-soot alternative to petroleum diesel, and when blended with propane can significantly reduce its carbon intensity.  Additionally, rDME is a cost-effective carrier for hydrogen, making it easy to deliver this renewable fuel for the growing hydrogen fuel cell vehicle industry.  Pursuant to the agreements, as amended, between the parties, the Operating Partnership also committed to provide additional funding to support continued development efforts to begin commercializing a propane+rDME blended product.  During the first quarter of fiscal 2022, the Operating Partnership purchased an additional secured convertible note issued by Oberon.  These investments were made in line with the Partnership’s Go Green with Suburban Propane corporate pillar, which focuses on innovative solutions to reduce greenhouse gas emissions.  The investment in Oberon is being accounted for under the equity method of accounting, included within “Other assets” within the condensed consolidated balance sheets, and the Partnership’s equity in Oberon’s earnings are included within “Other, net” within the condensed consolidated statements of operations.

During the first quarter of fiscal 2022, the Operating Partnership acquired certain assets from a propane retailer for $500 including non-compete consideration.