Acquisition Announcement: Advantage Propane LLC
KENT, Conn. – December 15, 2020 – Cetane Associates LLC (“Cetane”) is pleased to announce that Paraco Gas Corporation (“Paraco”) of Rye Brook, N.Y. has acquired the full-service propane delivery business of Advantage Propane LLC (“Advantage Propane” or the “Company”) of Califon, N.J. The transaction closed on December 4, 2020.
Founded in 2012 by Steven Congiusta and Douglas Tascarella, Advantage Propane sells and delivers propane to residential, commercial and agricultural customers in New Jersey and Pennsylvania from its Califon, N.J. facility, which includes a 30,000-gallon propane bulk plant. Co-founders Steve and Doug have extensive histories of working in the propane industry for various businesses. During this time, they discussed their mutual interest in establishing an entrepreneurial endeavor, which led to their decision to launch the Company. Their tremendous industry experience and local relationships helped them build Advantage Propane into the thriving and successful business it is today.
Paraco is one of the largest privately-held propane marketers in the U.S., providing propane services to over 120,000 customers, primarily in the Northeast region. Joe Armentano is Chief Executive of Paraco whose story began in 1968 when Joe’s father Pat Armentano founded an industrial gas company out of a garage in Mount Vernon, NY. By 1979, Pat purchased a small propane and oil marketer called Paraco Fuel Corp. and the flourishing legacy was established. Today more than 400 Paraco employees provide service excellence from its now 28 distribution locations.
Steve Congiusta, co-owner of Advantage Propane, commented, “We are very pleased that our organization will become a part of Paraco’s great business operation. We made it to the finish line in great shape thanks to the outstanding team we had at Cetane Associates. Doug and I chose the best team in the industry to represent us and we couldn’t be happier.” Co-owner Doug Tascarella remarked, “Creating a win/win was always the goal. Working through the process with the pros at Cetane made me wonder how anyone would attempt a transaction without them.”
Christina Armentano, Paraco’s Executive Vice President, and third generation with the company, stated that “Steve and Doug originated and built a successful business, and we appreciate and celebrate their choice of Paraco to continue bringing superior service to their customers. We are excited to welcome the Advantage Propane employees into the Paraco family.”
Jeff Brunner, Director of Cetane and transaction leader, commented, “I am happy for Steve and Doug to have completed this successful transaction. For a long while, I’ve known them both and was honored to work with them in this significant transition in their careers. Their business acumen and deep propane experience served them well in creating a valuable company at Advantage. It was a pleasure to work with them throughout the transaction.”
Cetane served as the sole arranger and financial advisor to Advantage Propane. Cetane advised on the sale, including an initial valuation opinion, marketing the business through a confidential process, assisting in negotiating the final deal terms, and coordinating the due diligence process. The transaction was managed by team members Jeff Brunner, Steve Abbate, and Fred Lord.
About Cetane Associates LLC
Cetane is a leading provider of financial advisory services to business owners in the retail energy distribution industry. Clients engage Cetane to advise on sales, spin-offs, and acquisitions, as well as perform valuation and ad hoc corporate finance assignments. For more information, please visit www.cetane.net.