Buckeye Partners has closed on its previously announced sale of the retail division of its Farm & Home Oil Company subsidiary to a wholly owned subsidiary of Inergy for $42 million plus a customary working capital adjustment.

As part of the transaction, Buckeye and Inergy entered into a five-year supply agreement pursuant to which Buckeye will supply 100% of Inergy’s liquid products requirements in certain areas of eastern and central Pennsylvania.

After a transition period, the remaining wholesale division of Farm & Home will conduct its product marketing activities in the name of Buckeye Energy Services.