Star Group acquires Long Island propane company

August 17, 2023 By Ellen Kriz

Star Group, a home energy distributor and services provider, completed the purchase of a privately held propane company for about $18.4 million.

The entity, with operations in Long Island, will enhance the Star Group’s footprint across the area.

Additional terms were not disclosed.

Star Group is a full service provider specializing in the sale of home heating products and services to residential and commercial customers. The company also sells and services heating and air conditioning equipment to its home heating oil and propane customers and, to a lesser extent, provides these offerings to customers outside of its home heating oil and propane customer base. Star Group also sells diesel, gasoline and home heating oil on a delivery-only basis.

Including its propane locations, Star Group serves customers in the more northern and eastern states within the Northeast and mid-Atlantic regions, including Connecticut, Delaware, Washington, D.C., Massachusetts, Maryland, Michigan, New Jersey, New York, Pennsylvania, Rhode Island, Virginia and West Virginia. Star Group encompasses at least 31 distinct brands in the home heating space.

Star Group pursues growth through a strategic acquisition program.

Silecchia

In an interview with LP Gas not specifically related to the Long Island deal, Anthony Silecchia, vice president of acquisitions and industry affairs at Star Group, says that the acquisition market is more active this year compared to past years, and indicators point to a continuation of that trend moving forward.

Among the reasons why home heating companies are looking to sell, he says, are the challenges of hiring and retaining skilled field and office personnel, maintaining margins under the pressure of inflation, navigating new and evolving legislation, updating IT infrastructure and time consuming processes pertaining to benefits renewals, insurance coverages and capitalization. Owners who lack a succession plan often sell instead of transitioning leadership or taking a risk with new or unproven management.