Acquisition Announcement: NES Group
KENT, Conn. – September 29, 2020 – Cetane Associates LLC is pleased to announce that DCC Propane, LLC, a division of DCC plc (“DCC Propane”), of Roberts, Ill., has acquired the full-service energy business of Northeast Oil and Propane, Inc. and Saveway Petroleum Inc. (together the “NES Group”) headquartered in Brooklyn, Conn. The transaction closed on September 2, 2020.
The NES Group is a long-established, full-service energy provider that sells and delivers propane and other related products and services to over 22,000 customers located throughout Connecticut, Massachusetts, and Rhode Island. The company operates under the brand names Saveway Petroleum, Northeast Oil & Propane, Uncas Gas, and Buy-Rite Fuel from three office locations and two bulk storage facilities.
DCC Propane is composed of propane retailers across the U.S. that have served communities for over 70 years, providing propane for residential, agricultural, commercial, and industrial uses. Additionally, DCC Propane includes Rocket Propane, a wholesale supplier of propane, Rocket Supply, a premier supplier of propane and anhydrous trucks, parts and service, and Hicks Water Solutions, a water conditioning business. DCC Propane employs over 500 people across its operations in 14 states.
David Scott, co-owner and President of the NES Group, expressed that “selling our business was our family’s long-term plan. We think that the Saveway Petroleum, Northeast Oil & Propane, Uncas Gas, and Buy-Rite Fuel brand names have a tremendous value to DCC Propane, who we know will take it to the next level, especially working with our management team.” He further noted that “a transaction of our size and scope was complex – lots of moving parts from start to finish. We were thrilled to be working with the team from Cetane Associates. Steve, Josh, and Fred all worked tirelessly, giving us guidance, advice, and moral support to make the transaction happen. We are very grateful.”
Marna Marasco, co-owner, commented “We are happy for our employees who we believe will have a great workplace with a growing company. We had no idea how much was involved in getting through the transaction and we are thankful for the help we received from the Cetane team.”
Matt Dantinne, Chief Executive Officer of DCC Propane, commented that “Northeast Oil and Propane and Saveway Petroleum presented us with an opportunity to enter the New England market in a big way. The acquisition provides DCC Propane a well-developed set of brands and an asset base managed by an extremely capable operating team. The Scott family, Dave, Spike, Marna and Deb, together with their parents, Richard and Gail, must be extremely proud of what they accomplished in building the business, and we really appreciate the trust they have placed in us to preserve their legacy.”
Steve Abbate, Managing Director and Principal of Cetane Associates, commented “I have known and worked with the Scott family for several years. They have always focused on hiring great employees and providing the best customer experience possible. They built one of the best companies we have had the pleasure to work with and I am thrilled that they will be going on to the next phase of their lives on top.”
Cetane Associates LLC served as the sole arranger and financial advisor to the NES Group. Cetane advised on the sale, including an initial valuation opinion, marketing the business through a confidential process, assisting in the negotiation of final deal terms, and coordination of the due diligence process. The transaction was managed by team members Steve Abbate, Joshua Wolf, and Fred Lord.
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 Associates LLC 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.