Shipley Energy has struck an agreement with Diesel Direct to acquire the residential heating oil business formerly operated by Worley & Obetz.
Boston-based Diesel Direct acquired the business in September, along with other Worley & Obetz’s assets, after making a $10.7 million bid in federal bankruptcy court.
Shipley Energy, based in York, announced on Thursday that it will be acquiring the former Worley & Obetz business. Worley & Obetz went bankrupt in June.
“The acquisition of what remained of the local Worley & Obetz heating oil business was a no-brainer for us,” said Shipley Energy CEO Dave Gruno. “These customers expect a high level of service and value, which dovetails with the philosophy of the Shipley Energy family of companies.”
The business currently has a few hundred customers, mostly based in Lancaster County, according to Steven Downey, vice president of marketing for Shipley Energy. Customers in Lancaster and Chester counties who decide to keep their service will be served by Shipley subsidiary Seth Energy.
Seth Energy formed in June, with former Worley & Obetz executive Seth Obetz acting as general manager, after the Lancaster energy company filed for bankruptcy. Seth Obetz now works for Shipley.
“This acquisition enables us to further expand our rapidly growing Seth Energy operations, while keeping these customers with the same team they worked with previously,” said Matt Sommer, president of Shipley Energy. “Seth and the team members in our Seth Energy division have been delivering fuel and servicing the furnaces of these customers for decades. Maintaining those relationships and continuity is very important.”
Shipley has not announced the cost of the deal with Diesel Direct but as part of the deal, Diesel Direct will acquire Shipley’s truck-to-truck fleet fueling business, along with its drivers and trucks.
Rhoads Energy Corp., also purchased former Worley & Obetz assets that had been acquired by Diesel Direct. Rhoads acquired HVAC installation, natural-gas and two propane businesses.