Written on: June 24, 2016 by ICM
Andrew McKeever, The Manchester (NH) Journal
MANCHESTER, NH– The Dorr Oil Company, a well-known local business in Manchester, has been sold to a New Hampshire-based energy firm.
A prepared statement from the financial company Rush Street Capital, which is based in Chicago, Ill. according to its website, released on June 20 stated it had obtained the financing for the acquisition of Dorr Oil, its storage tanks and equipment for Stone Road Energy, an oil services company based in Littleton, N.H. On its website, Stone Road Energy, a heating oil and propane distributor focused on the northeastern U.S., describes itself as involved in the oil and propane heating business and seeks to “acquire companies from owners that have run a good business over the years and have decided that now is the time to leave the business.”
Stone Road does not change the names of the businesses it acquires and lists five other oil and energy companies it has acquired, it states on their website.
“We do not remove the name or change the strong bonds these companies have with their local communities,” their website states. “We pride ourselves in honoring the names on our trucks and offices. We continue the traditions of exceptional customer support and add value where we can.”
In the press statement, Rush Street Capital announced that it has procured financing for Stone Road Energy, a Stone Road Capital Partners portfolio company. Proceeds from the financing were used for the acquisition of Manchester, Vt. -based Dorr Oil Company, Inc. and purchase of storage tanks and equipment. The financing closed on June 17.
Rush Street Capital has sourced $6.5 million in financing to support Stone Road Energy’s acquisition of Dorr Oil, and advised Stone road Energy RSC on the financing. The acquisition financing was provided by Farragut Capital Partners, a Chevy Chase, MD., financial company. The final total sale price Stone Road Energy paid to acquire Dorr Oil was not stated.
In the press release, Rick Lopez, Partner at Rush Street Capital, said, “The Dorr Oil acquisition is an excellent opportunity for Stone Road Energy to continue its expansion strategy and create operational synergies. The addition of Dorr Oil will give SRE a strong presence in the Manchester, VT market and will give the Company additional scale in both heating oil and propane distribution. The financing secured from our debt raise provides SRE with an optimal and flexible capital structure to complete this acquisition and position the Company for future growth.”
Attempts to contact a representative of Stone Road Energy, or Donald Dorr, the owner of Dorr Oil, for comment on the transaction were not immediately successful on Thursday.
A listing for Dorr Oil, which has an office and service area along with a small gas station on Bonnet Street across from the town’s Rec Park on the Superpages.com website, states it was founded in 1971. In addition to selling home heating oil, diesel fuel and kerosene, it also has a service business for oil furnances and offers 24 hour a day, seven days a week emergency services. It serves commercial, industrial and residential customers in Bennington, Windham and Rutland counties.
Courtesy: The Manchester (NH) Journal