Acquisition Announcement: Hometown Heating
KENT, Conn. – October 15, 2020 – Cetane Associates LLC (“Cetane”) is pleased to announce that Santoro Oil Company, a wholly-owned subsidiary of Total Energy Capital Corporation (“Total”) of Providence, R.I. has acquired the heating oil delivery and HVAC equipment installation and maintenance business of Hometown Heating, LLC (“Hometown Heating”) of Brooklyn, Conn. The transaction closed on October 5, 2020.
Hometown Heating, founded in 1998, sells and delivers heating oil and performs installation and maintenance of heating and cooling equipment to residential and light commercial customers in and around Brooklyn, Conn. The company is a Mitsubishi Preferred Diamond Contractor™ with an emphasis on customer service and has become known as “The Oil Company People Love.”
Total is a third-generation family-owned and operated company with subsidiaries located in the New England and Mid-Atlantic regions. Total’s subsidiaries include Santoro Oil in Providence, R.I., CKSmith-Superior Oil in Worcester, Mass., Ocean State Oil in North Kingstown, R.I., and Domestic Fuels & Lubes in Chesapeake, Va. and Everetts, N.C. Total is a full-service provider of heating oil, propane, motor oil, lubricants, DEF, diesel, gasoline, and HVAC services and installation to more than 25,000 residential, marine, and commercial customers.
Co-owners James Booth and Jacqueline Booth of Hometown Heating expressed their delight in completing the transaction. James remarked that “Our earlier decisions to expand our business by acquisition and adding an HVAC service department really made us a great fit for Santoro Oil. Both of our companies prioritize customer satisfaction.” Jacqueline stated, “We feel fortunate to be selling Hometown Heating to such a well-established family company. Santoro Oil is a respected and well-liked company with a reputation for providing superior service. They are the perfect fit for our customers and employees.” She further added, “The team at Cetane Associates did a terrific job in professionally guiding us through this process to make what is a once-in-a-lifetime experience go very smoothly.”
John Santoro, President and Chief Executive Officer and owner of Total, stated that “We’re really pleased to complete this transaction with the Booths and begin the work of integrating our companies and the expansion of our marketing area to include Northeastern Connecticut. We continue to look for acquisitions that provide synergies to our existing subsidiaries and Cetane was very helpful in accomplishing that goal. We look forward to welcoming Hometown’s team of employees and being able to offer its customers our heating oil, propane, and HVAC services.”
Fred Lord, Director of Cetane, added, “Working with these two outstanding companies was a privilege for the team at Cetane. Their professional and friendly ways made the transaction move ahead at a steady pace and resulted in a successful closing. We congratulate them both.”
Cetane served as the sole arranger and financial advisor to Hometown Heating. Cetane advised on the sale, including an initial valuation opinion, marketing the business through a confidential process, assisting in negotiating final deal terms, and coordinating the due diligence process. The transaction was managed by team members Steve Abbate, Fred Lord, Joshua Wolf, and Barrett Conway.
About Cetane Associates
Cetane Associates LLC 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.