Seller stories from propane retailers

Rapid growth forces Oklahoma company to seek needed support

Cleveland Petroleum recognized the difference between growth and growth the right way. And because of that key difference, the Cleveland, Oklahoma-based company knew the time had come to seek additional resources and support.

So last November, it closed on a sale to Meritum Energy, which owns and operates a portfolio of propane, fuel, lubricant and other NGL distribution assets from the southwestern United States to the East Coast. Legacy Energy Consulting helped Cleveland Petroleum navigate the process.

“After more than 50 years of steady growth, we reached a point where the business was beginning to outgrow our internal infrastructure,” explains Stephen Southward, the CEO of Cleveland Petroleum, who now leads the Oklahoma division. “To continue scaling at a high level, we recognized the need for deeper resources across HR, marketing, legal and operations.”

Cleveland Petroleum operated 20 locations across Oklahoma and Arkansas, serving residential, commercial, agricultural and industrial customers. But that growth took the operations outside its traditional footprint, including work in areas such as New Mexico.

That expansion also highlighted the need for a broader regional presence and additional infrastructure and offices to support that growth effectively. And with the second and third generations still actively involved in the business, Southward says, it became clear that partnering with the right organization would create the best long-term outcome for everyone.

“We didn’t need a lifeline; we needed a launchpad,” he says. “At some point, you realize protecting what you’ve built isn’t enough, and you have to elevate it.”

Cleveland Petroleum spent about a year preparing the business for sale and ensuring its data, inventory controls and financial reporting were accurate, consistent and ready for detailed review by potential partners, says Southward.

The other key part of the process? Choosing the right partner. For Cleveland Petroleum, that meant finding a partner with a growth-oriented mindset, one committed to employees and customers, and one that shares its values.

---

Sale gives Massachusetts family business added resources for growth

F.A. Days & Sons has been a fixture in the Outer Cape Cod region of Massachusetts for more than 55 years. And though it was acquired by Guardian Propane Partners earlier this year, F.A. Days & Sons remains a family business, now led by the third generation.

Michael Enos, 34, is playing an expanding role in leading F.A. Days & Sons into the future after his father Chris Enos, the owner and president, stepped back to spend more time with his first grandchild.

Now, Michael is implementing his ideas with the support of Guardian Propane, a newly created propane platform, and investment firm Inyarek Partners. Blue Peak Resources brought the companies together.

“I had ideas we were going to innovate and revolutionize not just what we were doing, but on a scaling measure,” Michael says. “There’s a lot of things we’re looking to do in the future.”

Michael says Guardian Propane was unique in that it trusted his approach to the business. He also liked how Guardian’s CEO, Jordan Landrum, has more than two decades of propane industry experience.

“Our role is to stand behind those local teams with capital, resources and operating support that reinforce what already works well while positioning their businesses for the next decade of growth and succession,” Landrum shares in a press release announcing the deal.

F.A. Days & Sons has experienced rapid growth on the Cape. Now, with Guardian Propane involved, Michael says, he plans to manage that growth while providing a better environment for employees and customers.

One of his first steps was digitalizing the company’s platform and moving it out of its paper-based phase. He credits his wife, Sidorela, with helping to fast-track the implementation process.

“You get the live person, but we’re automated,” he says. “That’s the best part about it.”

Michael indicated there’s much more to come from F.A. Days & Sons in the Northeast, where customers are seeing the benefits of gas appliances.

“What we’re bringing to the table is something that’s going to change the game,” he says.

---

In selling business, Connecticut retailer realizes ‘there’s more to life’

David Gable recalled the process of selling his propane business, Hocon Gas, while sitting in his son-in-law’s beach house in Costa Rica, watching the waves roll in.

Gable, 72, spent most of his life in the propane industry after his dad bought a small propane company in Connecticut in 1952. After working in the homebuilding and construction industries, Gable joined the family business in the 1980s and eventually grew it to five locations, with 120 employees serving more than 35,000 customers throughout the state.

But earlier this year, Hocon Gas sold to EDP.

“It’s sort of an emotional defeat to say I’m not going to do this anymore, because I’ve been so ingrained in the industry,” Gable says. “But there’s more to life than being in business and counting money every day.”

Gable says he knew he’d ultimately sell Hocon Gas, and he estimates a two-year process to prep the business for sale. He advises propane marketers considering a sale to hire an outside accountant or bring in somebody to perform a quality of earnings analysis on their operating expenses.

“We know how to operate our businesses; we know how to manage them and work at providing service to our customers and employees, but the financial side of this is a whole different scheme,” he says. “I personally don’t think I was prepared for that.”

Selling to EDP wasn’t a difficult decision for Gable, who knew Tom Knauff, the company’s founder, well. Gable felt they were aligned in how they viewed the future of the business.

“That was a significant consideration,” he says when asked about his employees and customers.

“I felt that my business philosophy and EDP’s philosophy were in sync. Their consideration for keeping all the employees intact in order to support the customer base is critical in this business.”

The sale is still too fresh in Gable’s mind to know exactly what he’ll do next. For now, he’s happy to be in good health and to dial back his “24/7/365” schedule.

“I would want to say to not wait until it’s too late,” he adds. “You should be able to do some things and enjoy traveling or whatever and spend time with your family.”

« Prev Page 1 2 3 Next Page »