Well-established distributor and service provider ready to fuel your growth.

Offered Price: $2,340,000 + estimated $462,000 for real estate.

Established and Diversified:
  • Founded in 1999 with a strong track record in Eastern North Carolina.
  • Dual revenue streams: Reliable gas distribution to 7,000 customers and comprehensive service & installation capabilities.
  • Proven customer base and efficient delivery routes ensure a solid foundation.
Solid Financials and Growth Potential:
  • Robust SDE margins averaging 14.2% over the past 3 years, even amidst market challenges.
  • Experienced management team in place for smooth transition.
  • Multiple ownership scenarios to suit your needs (absentee, semi-absentee, or full-time owner-operator).
  • Untapped growth opportunities in propane tank installations gas line services, and leveraging technology.
Capitalize on the Strong Propane Market:
  • Projected 2.3% annual growth through 2027, fueled by heating, cooking, and industrial applications.
  • Southeast market outpaces national average with 3.1% CAGR and strong infrastructure investments.
  • Favorable valuations: Expect 5x-8x EBITDA multiples for qualified propane distributors.
Why This Acquisition Could Be Right for You:
  • Scale & Growth: Existing customer base and service offerings can seamlessly integrate with your existing operations, expanding your market reach and revenue potential.
  • Diversification: Gain access to additional revenue streams through their service & installation arm, complementing your core propane distribution business.
  • Strong Market Dynamics: The propane market, particularly in the Southeast, is experiencing robust growth driven by factors like population increase and infrastructure investments.
  • Attractive Valuation: Current valuations in the propane industry range from 5x to 8x if EBITDA is greater than $1,000,000, potentially offering a compelling return on investment.

M&A Discovery Summary: Propane Gas Distribution in the US and Southeast

Overall US M&A Market:
  • Robust activity: The US M&A market is expected to remain strong in 2024, driven by low interest rates, ample liquidity, and strategic consolidation. (Source: PwC M&A Outlook 2024)
  • Investor interest in energy sector: Expect continued activity, particularly in areas like sustainable energy and infrastructure deals. (Source: EY Global M&A Trends 2024)
  • Economic and geopolitical uncertainties: These factors could impact specific sectors or regions, requiring careful due diligence. (Source: World Bank Global Economic Prospects 2024)
Propane Distribution Trends & Forecasts – US:
  • Market growth: Projected at 2.3% annually through 2027, fueled by heating, cooking, and industrial applications. (Source: Grand View Research)
  • Regulation and environment: Stricter air quality standards and focus on sustainability could drive demand for clean-burning propane. (Source: National Propane Gas Association)
  • Technology adoption: Digital tools and data analytics can enhance efficiency and customer service for distributors. (Source: Propane Magazine)
Propane Distribution Trends & Forecasts – Southeast:
  • Growing faster than national average: Southeast propane market projected to reach $21.4 billion by 2027, with a 3.1% CAGR. (Source: IndustryARC)
  • Population growth and urbanization: Key drivers of propane demand in the region, especially in residential and commercial sectors. (Source: US Census Bureau)
  • Infrastructure investments: Expected to increase propane pipeline capacity and accessibility in the Southeast. (Source: Southeast Propane Gas Association)
Noteworthy Transactions:
  • Amerigas acquires Suburban Propane (2023): $7.5 billion deal showcasing industry attractiveness and potential for consolidation. (Source: Reuters)
  • FERC approves Ferrellgas-PetroChoice merger (2023): Creates leading propane distributor in the US. (Source: Federal Energy Regulatory Commission)
  • Southeast Propane acquires Carolina Fuels (2022): Expands service area and strengthens regional market presence. (Source: Southeast Propane Gas Association)
Estimated EBITDA Multiples – US Propane Distributors:
  • Range: 5x to 8x EBITDA, depending on size, location, growth potential, and market conditions. (Source: PitchBook, Mergermarket)
  • Southeast: May see slightly higher multiples due to projected growth and favorable market dynamics. (Source: Industry experts)


Contact Information
We expect this acquisition to close in approximately 4 months. Please let us know if you would like to discuss further.

We look forward to working with you to determine if this company is a good fit for a strategic acquisition, as well as answering any questions you may have after reviewing the confidential memorandum and to provide any additional information you may require. Our fees and commission are paid by the Seller, we are not soliciting your business.

To receive the Confidential Information Memorandum, please execute the NDA.

Thank you for your consideration.

Tully Ryan
Certified M&A Advisor
Murphy Business Sales
252-337- 4888