One of Maryland’s Oldest Family-Owned Businesses Sold to Competitor

Southern Maryland Oil has purchased heating oil company Hein Bros., a family-owned business founded in 1921. Southern Maryland Oil will retain 14 Hein Bros.employees, though President Carl Hein and Vice President Frank Hein, the 80-year old brothers who have run the company, will leave, as will other family members.

Southern Maryland Oil did not actively seek the transaction. It was the Hein Bros.who approached Southern Maryland, trying to find a buyer with the same values and traditions as theirs.

In 1921, Charles and August Hein began delivering coal, wood, and ice to customers. In 1930, they incorporated the business, which then provided mainly fuel and heating oil. HVAC services came later. Family-owned Southern Maryland has also been in business for decades, and its current CEO has worked there for forty years. The two companies, according to a letter the Hein Bros. sent to its customers, “share the same philosophy.”

The industry is a competitive one, with family-owned companies on the decline. The two companies provide similar services to Anne Arundel customers, each focusing on different parts of the county, and they will gradually combine their operations. Southern Maryland will continue to use the Hein Bros. name initially, phasing it out as the company buys new equipment. All parties to the deal seemed to agree that the combination was a good fit.

Not all sales of a business go as smoothly as the happy marriage of these two family-owned companies. Still, most businesses involved in an acquisition face the same issues. Is the corporate culture of the acquired company compatible with the acquirers Will its employees be retained Will customers loyal to the acquired company stay with the new, combined entity Should its brand be preserved

Whether you are seeking to buy or sell a business or devise a corporate succession plan for the next generation, an experienced business lawyer can help you anticipate and address the legal and practical considerations involved. The expert attorneys at Longman & Van Grack advise all types of businesses, large and small, public and private, in a wide range of transactions. Call (301) 291-5027 for a consultation today.