Propane Distribution Company

Price: N/A

Location: Cincinnati

Industry: Nondurable Goods

Listing ID: 002092601.1

Listing Status: Under Contract

Description

This Propane Distribution Company is a long-standing provider of propane and ancillary propane related accessories serving the Greater Cincinnati, Northern Kentucky and Southeast Indiana market. This Propane Distribution Company has steadily grown each decade since inception. This Propane Distribution Company has built a strong reputation for quality products, expert service, and a commitment to customer satisfaction. Its offerings include distribution to both residential and commercial customers.
The business is financially strong and operates completely debt-free. This Propane Distribution Company has established a dominant position generating stable, repeat business. This base is comprised of 25% commercial accounts and 75% residential accounts, many on automated or set-schedule delivery. With a professionally trained staff averaging 15–20 years of experience (including two very experienced drivers) and long-standing vendor relationships with well-known brands, the company has maintained financial stability and operational strength.
The business operates from one main facility and one large off-site propane storage location. The main facility includes large propane tank storage, warehouse and office space, supporting both retail and commercial service operations.

Key Strengths or Product Focus:
-Consistently profitable business with upside potential
-Established reputation with repeat residential & commercial clientele
-Highly sustainable industry with a CAGR of 5.03% per year over next five years
-Fully Equipped with well-maintained equipment included in the sale
-Streamlined operations
-Scalable model – great add on to existing services

LISTING DETAILS

Cash Flow: $570,198

FFE: $2,732,000

FFE Included: Yes

Inventory: $56,200

Inventory Included: Yes

Operation

Employees: 7

Location

Real Estate Included: No

Summary

Reason For Sale:

Retirement

Training & Support:

One part-time owner can transition over 3 months post-sale. The other part-time owner can transition over 24 months, with mutually agreeable terms.

Competition:

The company specializes in the storage, sale, and reliable delivery of propane products. The demand for these services is largely non-discretionary, ensuring revenue stability regardless of economic fluctuations. This industry is defined by establishments engaged in the storage, sale, and delivery of propane to residential, commercial, agricultural, and industrial end-users. As a domestically produced, portable, and cleaner-burning alternative fuel, propane often serves as the primary energy source in rural and off-grid locations not serviced by natural gas pipelines. The overall U.S. Propane Market exhibits a robust growth trajectory, driven by its essential utility and expanding applications. The estimated market size for the U.S. Propane Market is approximately $26.90 billion in 2025, and it is projected to grow at a Compound Annual Growth Rate (CAGR) of 5.03% through 2030. The market is characterized by a strong demand floor in the residential sector, which uses propane for critical needs such as space heating, water heating, and cooking.

Potential Growth:

This Propane Distribution Company is a well-established, multi-service company with a strong foundation in its community and a highly loyal customer base.
- Increased Market Penetration via Advertising: The business benefits from decades of word-of-mouth reputation but has significant headroom for growth through active marketing. A new owner can execute targeted, localized advertising campaigns (local radio, high-visibility digital ads) to grow market share and accelerate the current trend of consistently adding new propane customers.
- Strategic Asset Acquisition: The company currently leases its offsite bulk fuel tanks. A clear opportunity exists to purchase this critical offsite property to mitigate the risk associated with leasing, secure long-term control over essential operational assets, and eliminate future rental costs.

Mike Lohbeck, CBI

Mike Lohbeck, CBI