The Client’s Objective
We were retained by our client to value and potentially sell the heating oil, HVAC and card lock fueling divisions of a large lubricant & petroleum distributor in southeast Pennsylvania.
Our client was a large lubricant distributor and their main objective was to purchase the target company’s substantial lubricant distributorship. The owner did not want to split up the business and was requesting offers for the entire company. There was significant ongoing environmental remediation occurring on the two parcels of real estate utilized by the company and owned by the principals via a separate corporation.
We completed a market analysis of the heating oil, HVAC and card lock fueling divisions. Based on this information, our client was successful in securing an offer to acquire the entire company. During the due diligence period, our client made the decision to spin off the heating oil, HVAC and card lock fueling divisions. We proceeded to put together marketing materials and developed a marketing plan to sell these divisions. The goal was to have a simultaneous closing with the lubricant division.
We were able to obtain several qualified offers for the heating oil, HVAC and card lock divisions, including a real estate lease for the two properties utilized by the business. The closing took place simultaneously with the lubricant division. The owners’ financial objectives were met and our client was able to acquire the lubricant division and consolidate it with their existing operations in the area.