Company acquisitions aren't just for the big corporations who gobble each other up. Business acquisitions and mergers also occur at smaller levels, including between regional companies. An example of this recently took place between two businesses in the Mid-Atlantic region.
Earlier this month, ThompsonGas, based out of Hagerstown, Maryland, announced the acquisition of assets from Campbell's Bottled Gas Inc. and Campbell EasiGas Inc., both based in Manassas, Virginia. Currently, the Campbell companies serve 1,350 Virginia customers with 2,000 propane racks dispensing 20-pound grill cylinders. With the acquisition, ThompsonGas increases its annual propane capacity by about 1.5 million gallons.
ThompsonGas isn't a novice when it comes to business mergers and acquisitions. Since its founding in 1946, the company has made 26 acquisitions - three of them made late last year. This upped its annual capacity to 8.5 million gallons. The merger of ThompsonGas and the Campbell companies marks ThompsonGas' first Virginia plant.
The pursuit of another company via merger or acquisition has its advantages and disadvantages. Though it can help expand a company's scope and assets, the process can involve complications even between smaller regional businesses. In this case, where a Maryland company is acquiring a Virginia business, variation in state laws and regulations can lead to delays in the process. This is where attorneys specializing in business and commercial law come in handy. These types of attorneys can help ease the tensions created during the procedures by participating in negotiations and drafting sound transition contracts agreeable to both parties. Business and commercial law attorneys can also review state laws to determine if any of them can cause issues with a merger.
Source: Herald Mail, "Hagerstown propane service provider buys Va. business", Don Aines, May 12, 2013