Sycamore Gas Company

Situation

Sycamore Gas Company (“Sycamore” or the “Company”), headquartered in Lawrenceburg, Indiana, is a natural gas local distribution company (“LDC”) serving customers throughout the southeastern Indiana counties of Dearborn, Franklin, and Ohio.

Founded in 1868, Sycamore operates a distribution network consisting of 177 miles of pipeline which provides natural gas services directly to residential, commercial, industrial, and transportation customers.

The Company’s 100% owner and President desired to pursue a sale transaction to facilitate his exit from the business.

Solution

The Company engaged Amherst Partners (“Amherst”) to lead a targeted process focused on maximizing value and identifying a buyer with the capital and resources to grow Sycamore to its full potential.

Results

Amherst prepared comprehensive marketing materials articulating the Company’s unique attributes and growth potential, and successfully marketed Sycamore to a highly targeted universe of strategic buyers.

After receiving competitive indications of interest from all parties that were approached, the Company was ultimately sold to BlackRock, Inc. (“BlackRock”) with plans to effect the transaction through one of its portfolio companies, Hearthstone Utilities, Inc. (“Hearthstone”).

BlackRock is a premier provider of asset management, risk management, and advisory services to institutional, intermediary, and individual clients worldwide.

Hearthstone, acquired by BlackRock in 2017, is a natural gas LDC that serves approximately 70,000 customers and operates across Ohio, Maine, Montana, and North Carolina. The strategic opportunity for Sycamore to pair with such an established business was unparalleled, and the transaction well exceeded value expectations.