Paraco Gas acquires Consumers Propane
Paraco Gas, located in Rye Brook, New York, acquired Consumers Propane, located in Woonsocket, Rhode Island. Cetane Associates served as the sole arranger and financial adviser to Consumers Propane. The transaction closed on Jan. 6.
The history of Consumers Propane
In 1919, Germaine Bousquet founded Woonsocket Consumers Coal Co. with an initial focus on retail coal distribution. In 1929, he added a retail gas station in Woonsocket, Rhode Island. By 1942, the company expanded to sell kerosene and heating oil under the name Consumers Oil. Germaine’s son, Rudolphe Bousquet, took over in the 1950s and added propane services as Consumers Propane.
The company grew in the 1980s and 1990s, acquiring local businesses and expanding its offerings to include HVAC service for natural gas customers. By 2019, as Consumers opened a second bulk plant, fourth-generation owner Ken Bousquet assumed full control of the company.
Today, the company operates as a full-service provider of propane, heating oil and motor fuels.
“Our goal was to find a partner that would honor and preserve our company’s longstanding history and reputation within the community,” Ken Bousquet, owner of Consumers Propane, says. “With the help of Cetane, we were able to find a buyer we felt would best accomplish this goal. Working with an experienced team made all the difference, and we know Paraco will continue to provide the same excellent service that Consumers has always been known for.”
The history of Paraco Gas
Paraco Gas serves over 120,000 customers across the northeastern United States. Established in 1968 by Pat Armentano, the company expanded in 1979 with the acquisition of Paraco Fuel Corp. Today, under the leadership of CEO Joe Armentano and third-generation COO Christina Armentano, Paraco employs over 400 team members and operates 28 distribution locations.
“Consumers has built a strong foundation and a loyal customer base,” Joe Armentano says. “We are excited to welcome their customers and employees to the Paraco family and look forward to continuing the tradition of excellent service and reliability they’ve come to trust.”
Cetane assists
Cetane is a provider of financial advisory services to business owners in the propane industry. Clients engage Cetane to advise on sales, spin-offs and acquisitions, as well as to perform valuation and ad hoc corporate finance assignments.
Cetane advised on the sale between Consumers Propane and Paraco Gas, 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. Team members Griffin Sharp, Trey Brasseaux and Dalton Brooks managed the transaction.
Featured homepage image: designer491/iStock/Getty Images Plus/Getty Images