Acquisition Announcement: Mack Oil Company, Inc.
KENT, CONNECTICUT February 11, 2020 – Cetane Associates LLC is pleased to announce that the Rhoads Energy Family of Companies in Lancaster, Pennsylvania has acquired the full-service heating oil business of Mack Oil Company, Inc., in Malvern, Pennsylvania.
Founded in 1931, Mack Oil Company, Inc., operating under the name Mack Services Group, delivers heating oil and HVAC services to residential customers located between Bryn Mawr and Gap in southeastern Pennsylvania. In addition, Mack Oil Company, Inc. performs bulk deliveries of motor fuels to commercial customers in Chester, Delaware, Montgomery, Bucks, Lancaster, and Berks counties in Pennsylvania, owns and operates three Pacific Pride branded cardlock sites, and markets retail, and sells natural gas supply to residential and commercial customers within PECO Energy Company’s natural gas distribution service territory.
The Rhoads Energy Family of Companies has been servicing customers in the Lancaster region of Pennsylvania for more than 100 years. Operating under the trade names Rhoads Energy, Atlas Oil, EG Smith Inc, Boyertown Oil, and Vincent R. Boltz, Rhoads Energy Family of Companies delivers heating oil, propane, and HVAC services to residential and commercial customers throughout southeastern Pennsylvania and sells natural gas supply to residential and commercial users within the natural gas distribution service territories of UGI Corporation and PECO Energy Company.
Dave McCorry, President of Mack Oil Company, Inc., commented that “Selling our family business to Rhoads Energy was a pretty natural decision. My brothers and I desired to see a smooth transition for our customers and our employees. We knew that the Rhoads team enjoys strong reputations for both customer service and workplace job satisfaction. Doug Woosnam and Fred Lord at Cetane Associates really went the extra mile in making this deal happen. We are all very happy with its outcome.”
Michael DeBerdine, CEO of the Rhoads Energy Family of Companies, remarked, “We are very pleased to be able to offer the McCorry brothers a pathway to transition their business to new ownership. We are excited to welcome the Mack Service Group’s customers and employees to the Rhoads Energy family and look forward to what we think will be a seamless transition.”
Cetane Associates, LLC served as the sole arranger and financial advisor to Mack Oil Company, Inc. Cetane advised on the sale, including an initial valuation opinion, marketing the business through a confidential, formal process, negotiation of the final deal terms, and coordination of the due diligence process. The transaction was managed by team members Doug Woosnam, Steve Abbate, Fred Lord, and Joshua Wolf.
About Cetane Associates
Cetane Associates, LLC is a leading provider of financial advisory services to owners of businesses 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.
Steve Abbate, +1 860-592-0089