NEW MILFORD, Conn. – September 12, 2023 – Cetane Associates (“Cetane”) is pleased to announce that Eastern Propane Gas, Inc. (Eastern Propane), a New Hampshire corporation, has acquired the business assets of R. B. Sahagen, Inc. DBA Blue Flame Gas Company (Blue Flame), headquartered in Rangeley, Maine. Blue Flame is a full- service propane sales, delivery, and appliance business which also owns and operates a retail store offering a wide range of products for the home. The transaction was completed on August 29, 2023.

With expertise in the propane industry, Robert and Jeannine Sahagen established Blue Flame in 1998. From their initial home-based operations, they grew the business to include a bulk plant that houses an office, vehicle-repair and inventory space, and a 30,000-gallon storage tank. After extensive on-the-job training, the Sahagen’s son Aaron Vryhof and his wife Meagan Vryhof took on leadership roles and joined Robert and Jeannine as owners in 2008. Blue Flame grew by acquisition of a local competitor, Rangeley Propane, and a stove shop, Rangeley Fireplace & Stove Co. Growth continued for the company while building relationships with builders and contractors in northeast New England. By putting their customers first, Blue Flame is now the primary propane business serving residential and commercial customers in and around Franklin, Oxford, and Somerset Counties, Maine. Co-owner Robert Sahagen comments, “Building Blue Flame Gas has been a united family effort to guarantee our customers get the best service possible. We know Eastern Propane will carry on this legacy well.” Co-owner Meagan Vryhof states, “We don’t know how we could have made it through this process without the amazing and constant support of the Cetane team. We put our faith in the right team.”

Eastern Propane is a fourth-generation family business established in Danvers, Mass. in 1932. Under the leadership of the Clement family, the business evolved from a hardware store to selling bottled gas under the name Country Gas Distributors and expanded to become a four-state LP gas retailer and wholesaler in 1969, when the business was renamed to Eastern Propane. Their growth has been enhanced by providing the same reliable and customer-friendly service the Clements envisioned in the 1930s. President and co-owner Chuck Clement III comments, “We are pleased to welcome the Blue Flame Gas Company team to Eastern. Their customer service focus is a perfect fit with ours. We look forward to having their employees join the Eastern family.” He added, “We enjoyed working with Tamera Kovacs and the Cetane team on this project. Their expertise and support was appreciated.”

Tamera Kovacs, Director at Cetane Associates, said, “Working with the Sahagen and Vryhof families was a pleasure. They’ve built a successful business through their professionalism and smart business practices. I wish them well as they enter their next chapter.”

Cetane served as the sole arranger to Blue Flame. 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 Tamera Kovacs, Fred Lord, Duncan McMurchie, and Dalton Brooks.

Your Legacy May Surprise You —

At age 63 I had the fortunate opportunity to retire from my Operations job of 35 years and start a job I love: helping owners sell their business. For over 40 years after college, I was General Manager of a service business. This included over 1,000 people who worked with me in some capacity.

Daily thoughts included managing people, making budget, growing the business, hiring, terminating, warning reports, random drug test, vehicle safety, employee reviews, pay adjustments, customer complaints, buying equipment, new Industry regulations, buying a nearby business…the list is endless.

I still reside in a nearby community and have a chance to see former employees at random times. I am no longer their boss—just an old guy with a tan in shorts. They often tell me how I am remembered: almost like a living eulogy.

The one thing they share with me (what they don’t share is probably best left unshared) is how I knew everyone’s name and how I often took time to say hello and use their name. I saw our business grow from 75 employees to nearly 300. I did 40 acquisitions, I started before email, the internet, and routing software and I navigated a pandemic. AND this is how I am remembered.

I learned the value of using names in a Dale Carnegie class at age 23. I was more interested in meeting the girl sitting next to me than finishing the class.  I have a BS and an MBA, I have a 6 Sigma belt of some color, I have read over 100 business books…and this is how I am remembered.

People remember how you treat them—pretty simple.

Bob Williamson

Pest & Lawn Director, Cetane Associates

August 2023

PCO in the Know | Blog #3

NEW MILFORD, Conn. – August 23, 2023 – Cetane Associates announces completing its 100th sell-side transaction in July 2023. This milestone of providing expert financial advisory services to 100 business owners in the retail energy distribution and home services industries is a marker of continuing success.

Principal and Managing Director Barrett Conway states, “From our inception in 2006 to today, Cetane’s founding spirit remains the same: to deliver financial services that create a winning result for business owners. We celebrate this achievement with gratitude for our clients who put their trust in our team.”

Through its ongoing commitment to excellence, Cetane has achieved winning outcomes. As founder and Managing Director Steve Abbate says, “When I started the company it was a leap of faith.  I always tried to live by a lesson I was taught by one of my favorite authors, Zig Ziglar, who said that in order to get what you want out of life, you have to help other people get what they want. We have now helped over one hundred owners achieve their transition goals. It’s more than getting the most money for an owner, it’s about getting the best transaction in every aspect, for both the buyer and the seller. That’s what makes a truly successful transaction.”

Transaction #100 (sell-side clients only) follows these recent Cetane accomplishments including:

• Meeting the needs of its growing client base, the company now includes a specialized team of 15 professionals with many years of experience in acquisitions, valuations, financial analysis, legal review, business development, marketing, and administration
• Geographic growth and expansion from the northeast region to nationwide coverage
• Enhanced digital communication, delivering its message through various online channels

Cetane Associates is a leading M&A advisory firm which also makes vital contributions to the delivered fuels and home services industries through membership, leadership, and sponsorship supporting multiple state, regional, and national trade associations.

NEW MILFORD, Conn. – August 15, 2023 – Cetane Associates (“Cetane”) is pleased to announce that American Lease, Inc. (“American Lease”), a Delaware corporation, has acquired certain tangible and intangible assets related to the residential distillates delivery and service business of Sperr’s Fuel & Heating Co. (“Sperr’s Fuel”), a corporation based in Glen Mills, Pa. The transaction closed on June 28, 2023.

A family-owned business founded in 1983 by John L.  Sperratore, Jr., Sperr’s Fuel grew first by word of mouth and from new accounts developed through LIHEAP. After 35 years John wanted to retire, coinciding with his son Mark and daughter-in-law Laura stepping into manage the business. By 2018, Mark and Laura became owners who made updates to the company’s website and digital marketing, relocated their facility, and hired new employees. Sperr’s Fuel co-owner Mark Sperratore comments, “We’re really pleased to have American Lease carry on the residential business our family built.” And, co-owner Laura Sperratore states, “We are truly grateful to the Cetane team for taking us through this transaction with such care and expertise.”

American Lease is the fleet arm of American Energy Supply, led by President Kristen Baiocco. The business has a history that dates back to the 1970s when Kristen’s father Russell J. Baiocco established a reliable fuel supply for construction projects. Today, the business is certified with The Women’s Enterprise National Council as a business owned and operated by two women, Kristen Baiocco and Maria Baiocco. Kristen says, “We are very happy to continue the strong record of excellent customer service at Sperr’s Fuel and welcome their team members and their loyal residential customers to the American Lease family.”

Doug Woosnam, a Director at Cetane Associates, commented, “Our thanks to Mark and Laura for working in concert with our team. I congratulate them on this milestone and wish them the best with all their future plans.”

Cetane Associates served as the sole arranger and financial advisor to Sperr’s Fuel. 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 included severing the residential and commercial divisions of Sperr’s Fuel (Sperr’s Commercial Fuels is the remaining business entity). Team members Doug Woosnam, Barrett Conway, Trey Brasseaux, and Dalton Brooks managed the transaction.

NEW MILFORD, Conn. – August 8, 2023 – Cetane Associates (“Cetane”) is pleased to announce that Energy North Incorporated, DBA Haffner’s, of Lawrence, Mass. has acquired certain tangible and intangible assets related to the full-service heating fuels and propane delivery business of Andrew Hartmann, Inc. DBA Hartmann Oil & Propane (“Hartmann”), a New Hampshire corporation. The transaction closed on August 1, 2023.

Hartmann was founded in 1989 by Andrew Hartmann who began his fuel industry career as a delivery driver. Since its founding, Hartmann has experienced consistent growth by diversifying product, fuel, and services offerings, building a new facility and bulk plant, and adding a cash fuel branch. The Hartmann mission has always been to create the highest level of customer satisfaction for its residential, commercial, and wholesale customers throughout New Hampshire’s sea coast, southern Maine, and northern Massachusetts communities. President and owner Andrew Hartmann stated, “We couldn’t be happier with this transaction. I’m thrilled for our employees and customers to be in the great hands of Haffner’s. Their commitment to the communities they serve is a perfect fit with how we’ve built our business.” He also remarked, “A deal like this is complex. We are grateful to the Cetane team for smoothing out the complexities every step of the way. Cetane’s expertise was crucial to our ultimate success.”

Shown at the closing dinner, Andrew Hartmann (center) with friends and family.

For nearly 100 years, Haffner’s has been warming and cooling homes and businesses and fueling and cleaning vehicles, serving the Massachusetts, New Hampshire, southern Maine, and upstate New York areas. A proud brand of Energy North Group, Haffner’s distributes oil and propane while providing HVAC to nearly 50,000 customers in New England. The Energy North Group is one of the largest wholesale distributors of fuel in New England and upstate New York, operating over 70 gas stations, convenience stores, car washes, and food service locations. President Jeffrey Black commented, “Welcoming Hartmann Oil & Propane into our family is a momentous occasion for us. Their customer-centric approach and focus on safety and reliability perfectly align with our values, and together, we are poised to continue providing the highest level of service and care to our extended family of customers.”

Barrett Conway, Managing Director at Cetane, commented, “Congratulations to Andy and the entire Hartmann Oil & Propane organization. It was our pleasure and honor to work with this outstanding group. We wish you well as you launch your next chapter.”

Cetane served as the sole arranger to Hartmann. 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 Barrett Conway, Fred Lord, and Dalton Brooks.