NEY, Ohio -- Lynn Bergman, president of Ney Oil Co., said he expects no changes now that his company is under new ownership. Very little will change, he told CSP Daily News about the company's sale to Heartland Holdings Inc., a diversified holding company based in Plymouth, Minn. We're just hoping to get access to some additional capital.
Heartland announced yesterday that it has entered into a binding agreement to purchase all outstanding issued stock shares from Ney Oil's owners for $5 million. Ney Oil, founded in 1927, is a multi-state [image-nocss] fuel distributor operating in Ohio and Indiana. The Ney, Ohio-based company operates six convenience stores under the Marathon and Sunoco brands and supplies about 30 independent locations.
As a subsidiary, Bergman said he and the rest of the Ney Oil management team will remain in place, operating the company much as it has for the past 78 years.
Terms of the agreement include a payment at closing of $3 million, with the equivalent value of 1.333 million in common stock Heartland Holdings valued three business days before closing for greater than $2 million. In the event the value is less than $2 million, the number of stock tendered will be increased accordingly.
Plymouth, Minn.-based Heartland Inc. is a diversified holding company with subsidiaries spanning from heavy machining and fabricated steel products to specialized machinery to organic fertilizers.