BOSTON--(BUSINESS WIRE)--Seacoast Capital, a lower middle market non-control growth capital investor, announced today its initial $15.4 million investment in Stone Road Energy (“Stone Road”). This transaction was Seacoast’s seventh 2017 non-controlling platform investment.
Founded in 2008, and headquartered in Gorham, Maine, Stone Road is a growing retail distributor of propane and heating oil and service providers in New England.
Seacoast’s investment in Stone Road was in support of the Company’s proven track record of acquiring, operating, and growing family owned companies. Seacoast anticipates making follow-on investments in Stone Road as it executes on its serial acquisition growth strategy.
“Being New Englanders ourselves, we understand the importance of the heating fuels sector to our geographic footprint,” said Tom Gorman, a Partner with Seacoast Capital. “The Company’s ownership of multiple fuel retailers and the associated storage capacity results in substantial competitive barriers.” Alan Rich, a Vice President with Seacoast Capital, added: “In one of the coldest regions of the U.S., a lack of natural gas infrastructure coupled with high alternative (non-fossil-fuel) home heating costs should result in consistently strong demand for propane and oil used to heat homes. We have high hopes for our Stone Road investment.”
“We are excited about beginning our relationship with Seacoast Capital,” said Bill Overbay, Managing Partner at Stone Road. “They were the most thoughtful of any of the other groups we evaluated and were able to take the inevitable deal hurdles in stride and with great flexibility. We look forward to growing Stone Road alongside Seacoast for many years to come.”
About Seacoast Capital
Founded in 1994, with offices in Boston, MA and San Francisco, CA, Seacoast Capital invests non-controlling growth capital in partnership with management in lower middle market companies. Seacoast is industry agnostic and typically invests $5 million to $25 million of capital in companies with $10 million or more in revenue and $2 million or more of EBITDA. Capital is used to support growth, refinancings, acquisitions, family wealth/ownership transfers, shareholder liquidity events, or management buyouts. Geographically, Seacoast invests anywhere in the United States. Since its inception, Seacoast has managed over $600 million of capital, which the firm has invested in 72 non-controlling transactions. Now investing its fourth fund, Seacoast Capital Partners IV, L.P., the firm continues to actively seek new investment opportunities. Learn more by visiting www.seacoastcapital.com.