Paraco Gas Corp.

July 1, 2008 By    

Best of Both Worlds

As acquisitions help Paraco Gas Corp. expand into a regional company, it remains the “neighborhood” supplier of propane for its customers.

John Armentano
John Armentano

When Airgas Northeast decided to sell the LPG portion of its Stratford, Conn., business to Paraco Gas Corp., it knew that the transition would be seamless for its employees and customers. The same can be said for Tennenbaum Gas in Ellenville, N.Y., and 21 other companies acquired by Paraco over the past 40 years. Paraco is a company with which other owners fully entrust their customers and employees. This is a glowing testament to a management team that not only talks about personal service and commitment, it consistently delivers on both.

Through expansion and acquisition, Paraco has fast become a regional company, catapulting it to 14th among the top 50 largest propane retail marketers in the U.S. Its family-owned and -operated roots, however, have not been lost on its growth and success.

“We offer the best of both worlds,” explained John Armentano, the company’s vice president of acquisitions. “Paraco is a regional company, but we continue to be the neighborhood supplier of propane services and products for our customers.”

Mr. Armentano continued: “The customers we inherit through acquisitions benefit from our status as a large retail marketer of propane because we have the ability to offer them the best value in services and products. But as a family-owned business for 40 years, we continue to be the industry benchmark in customer service, personal attention, safety and community involvement. We cater to the unique and varied needs of our customers in each community we serve, and we support a number of local groups – from youth sports to non-profit health care organizations.”

That’s what sets Paraco apart, and that’s precisely why other companies have a high comfort level in doing business with this industry leader. When Paraco makes an acquisition, it doesn’t end when the dotted line is signed.



Although the focus has been on the propane business, when a potential acquisition has propane and fuel oil, Armentano hasn’t allowed it to be a deal-breaker. Instead, he has been able to bring in a third-party buyer.

“In the current economic climate, acquisition opportunities are always surfacing because smaller companies are faced with high energy, health insurance and other business-related costs. We use our strengths to help other companies,” Mr. Armentano said.

Ironically, it was through an acquisition that Paraco became more involved in the LPG industry. What began in 1968 as primarily a welding supply distribution business out of a garage in Mount Vernon, N.Y., took a major turn when John’s father, Pat, acquired Paraco Gas of Peekskill, N.Y.

Within five years, the company grew from less than a half-million in annual propane sales to $1.75 million. The next big leap came six years after that with the acquisition of Suburban Propane operations in Shirley and Smithtown, both in Long Island, NY, pushing annual propane sales to $9 million.

Today, Paraco provides more than 35 million gallons of propane to nearly 70,000 residential, commercial and wholesale customers throughout New York, Connecticut, Massachusetts, New Jersey, Pennsylvania, Rhode Island and parts of Vermont. Paraco operates 21 branch locations and propane distribution facilities, and has a work force of approximately 250 employees. Paraco makes its headquarters in Rye Brook, N.Y.



Paraco Gas Corp.

800 Westchester Ave, S604
Rye Brook, NY 10573

Phone: 914-250-3791
Fax: 914-251-9444

E-mail:
jarmentano@paraco-gas.com

Website:
www.paracogas.com

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