STRICTLY BUSINESS: EMPLOYEES BECOME OWNERS

Ferrellgas, a Missouri company founded more than a half-century ago at Liberty, now has more than 4,000 owners.

Employees of the company, the nation's second-largest retail propane gas marketer, has acquired majority ownership of the company, purchasing it from Ferrellgas chairman James E. Ferrell.

"This is an exciting development that will allow all of us to more actively participate in building the company," said Roger Pierce, district manager of the Cape Girardeau branch of Ferrellgas. "Our local Ferrellgas employees are proud to join more than 4,000 employees throughout the United States in truly owning the company."

The local office has more than 12 employees, and throughout the Southeast Missouri-Southern Illinois area, there are hundreds of employees. All are involved in the transaction, which was approved recently and became effective July 1.

"We already take pride in serving customers quickly, safely and professionally," said Pierce. "As employee-owners, we have even more reason to make Ferrellgas the first choice for propane service."

Ferrell will remain involved in the company. "He wanted the employees who have helped make the company what it is today to be a part of the company," said Pierce.

Employees now have majority ownership of the company, said Dan Shelton, president and chief executive officer.

The company is funding the purchase from Ferrell through a federally qualified Employee Stock Ownership Plan (ESOP). The remaining equity of the company is owned by public shareholders. The company will continue to trade on the New York Stock Exchange.

Ferrellgas served about 800,000 customers in 45 states. Revenue in 1997 was $804 million.

Ferrellgas is the second company with a Southeast Missouri connection to become employee-owned during the past year.

BBL Building and Components Ltd., a company that specializes in three divisions of construction, including roof trusses and custom homes, near Perryville, became 100 percent employee-owned in December.

Ferrellgas has grown from a small, locally owned company a half-century ago, to an $800 million nationwide conglomerate with more than 850 facilities.

The company, headquartered in Liberty, includes a number of outlets in Southeast Missouri, including Cape Girardeau. Ferrellgas purchased Buckeye Gas Products Co., 2112 William, in August 1987, and maintains its district headquarters there.

Pierce, who was involved in propane gas operations before Ferrellgas came to town, has more than 29 years in the industry.

"We have a number of satellite sites working out of the Cape Girardeau office," said Pierce. These include offices at Benton, Marble Hill and Perryville in Missouri; Anna, West Frankfort and other areas in Southern Illinois, and Paducah, Ky.

Ferrellgas was established in 1939 by A.C. Ferrell. His son, James E. Ferrell, has played an integral part in the company's growth to its leadership position within the industry. Ferrell visited the Cape Girardeau operation on occasion.

The company owns and operates its own trading, supply and transportation facilities and is a major shipper on all U.S. pipelines, buying propane from most producers in the United States, Canada and some international companies.

Ferrellgas Partners, L.P. is traded on the New York Stock Exchange and has a national market share of 9 to 10 percent. Ferrellgas commands as much as 30 to 35 percent of the market share in Southeast Missouri.

As many as 20 percent of Americans use propane in some form.

"We have a big market in Southeast Missouri," said Pierce. "A lot of people use propane for recreational and outdoor activities -- barbecue grills, etc.

More than 60 million people in the United States use about 15 billion gallons of propane annually. The largest portion of propane -- 7.6 billion gallons -- is used for chemical industrial uses.

Other uses include internal combustion engines, 542 million gallons; residential-commercial usage, 5.3 billion gallons; agriculture, 1.4 billion gallons; utility-gas industry, 68.6 million

Propane gas was developed in 1910 by chemist Dr. Walter Snelling, who built a "still" that could separate gasoline into liquid an gaseous components.

A year later, propane gas was used to cook in homes. In 1912, the first propane-powered car was developed, and by 1915, propane was being used in torches to cut through metal. Propane was marketed for flame cutting and cooking applications by 1920.

Today, propane gas is an $8 billion industry in the United States and growing. More than 96,000 people are employed in the industry.

Propane is the fourth largest energy source, behind electricity, natural gas and fuel oil and is an approved fuel by the 1990 Clean Air Act.

B. Ray Owen is business editor for the Southeast Missourian.