Seacoast Capital Makes Initial Non-Control Growth Capital Investment in Stone Road Energy

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.

Contacts

Seacoast Capital
Phil
Curatilo, 978-750-1319
Principal & CMO
[email protected]