Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank. Since 1988, Matrix has provided merger & acquisition and financial advisory services to privately-held, private-equity owned and publicly traded companies.
Situation
Eastern Sierra Propane (“ESP” or the “Company”), headquartered in Bishop, California, is one of the premier propane retailers in the Eastern Sierra Nevada mountain range, serving over 5,000 residential and commercial customers.
The Company was founded in 1993 in Bishop, CA by Tom Sigler and Rudy Forster. Initially, Eastern Sierra Propane was run out of Tom Sigler’s house, and propane storage was obtained by using a 12,000-gallon tank at a customer’s location in exchange for installing vapor meters on his gas dryers.
Tom Sigler subsequently acquired Rudy Forster’s 50% ownership interest, and Tom along with his son, Jason Sigler who joined in 1998, have significantly grown the Company over the last two plus decades.
Matrix was retained to perform a valuation of the Company and to advise on a sale process. Ultimately, the shareholders decided to sell the business to diversify their wealth and focus on other ventures.
Objective
To customize, execute, and complete a confidential sale process in a way that would allow the shareholders to realize maximum after-tax value upon the sale of the Company.
Solution
Matrix provided ESP with merger and acquisition advisory services, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The sale process included a buyer pool of privately owned, regional and national propane marketers, large, public companies, and financial sponsors.
Multiple competitive offers were received for ESP, and Ferrellgas Partners, L.P. (OTC: FGPR) (“Ferrellgas”) was selected as the acquirer.
Matrix assisted in the negotiation of the asset purchase agreement and coordinated the due diligence and closing process.
The transaction with Ferrellgas closed in January 2024.
Situation
Bobby Taylor Oil Company, Inc. and T&S Transport, Inc. (“BTOC” or the “Company”), were leading suppliers of retail propane, commercial refined fuels, and racing gas to a customer base of nearly 6,000 residential and commercial accounts throughout the state of North Carolina.
The Company was founded in August 1963, and at the time, operated out of Mr. Bobby Taylor’s home in Fayetteville, North Carolina. During its first year of business, the Company sold fuel oil, kerosene, and gasoline to its local customer base with just one tankwagon. After several years of expansion, BTOC added propane and racing gas to its product mix and further expanded its customer base throughout central North Carolina.
Following his father’s retirement in the early 2000’s, Mr. Johnny Taylor Jr. assumed the role of President of Bobby Taylor Oil and led the Company through several decades of success and growth. At the time of sale, the Company operated two bulk plants in Fayetteville and Elizabethtown, N.C., employed over 30 dedicated associates, and provided service to approximately 6,000 customers.
Matrix was initially retained to perform a strategic review of the enterprise in order to explore various potential exit options, including the possibility of a break-up sale of the propane division and the refined fuels division to multiple different buyers.
The BTOC shareholders ultimately decided to exit the industry in order to diversify and focus on other ventures.
Objective
To customize, execute, and complete a confidential sale process in a way that would allow the shareholders to realize maximum after-tax value upon the sale of the Company.
Solution
Matrix provided merger and acquisition advisory services to BTOC, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction. The sale process included a buyer pool of regional and national propane marketers & commercial refined fuels distributors. Matrix executed a customized sale process to solicit offers for the entire company and for discrete operating divisions to determine the best path forward.
Multiple offers were received, and Parker Oil Company Inc. was selected as the ultimate acquirer.
Matrix assisted in the negotiation of the purchase agreement and coordinated the due diligence and closing process.
The transaction with Parker Oil closed in January 2024.
Situation
Day Motor Sports, LLC (“Day Motor Sports”) has been a leading bumper-to-bumper distributor of aftermarket parts and supplies for the enthusiast racing industry for nearly a half-century.
In 2011, Gen Cap America, Inc. (“Gen Cap”) acquired a majority stake in the Company to provide liquidity for certain management-owners.
Objective
With Gen Cap nearing the end of the fund horizon for the vehicle invested in Day Motor Sports, Matrix was retained to provide a return on capital to the fund’s LPs.
Management remained flexible on their roles going forward and were either willing to entertain offers for their membership interests, but were also ready to stay invested and grow their ownership along with the broader Company.
Solution
Matrix manufactured a process that struck a balance between getting a broad market read for valuation and partnership, while not straying from the mandate to exclude all direct competitors from participating.
With management ready to reinvest meaningfully in the enterprise, Gen Cap elected to sell the business to the existing minority ownership group rather than one of the third-parties. Management is confident in the near-term opportunities present to the business and are eager to create additional value for themselves.
Situation
Springer Eubank Company, Inc. (“Springer Eubank” or the “Company”) was a leading Wilmington, NC-based convenience store operator and fuels distributor, with nine company-operated convenience stores (Phoenix Marts), one travel center, six dealer/agent operated sites, and one greenfield landbank site, concentrated in the greater Wilmington, NC area as well as eastern South Carolina.
Additionally, the company operated a refined fuels distribution segment out of the Company’s bulk plant located near the port of Wilmington that included nine fuel transports and eight short trucks.
In 1976, Springer Coal and Eubank Oil merged to form Springer Eubank Oil Company, which in 2004 was acquired by W. Cecil Worsley, III and became Springer Eubank Company, Inc.
Matrix was engaged to perform a valuation of both the travel center, convenience & gas division and the delivered fuels division.
The decision was made to exit the business as part of a diversification strategy and to allow Mr. Worsley to focus additional time on other ventures.
Objective
To customize, execute, and complete a confidential sale process that would allow the Company’s shareholders to realize maximum after-tax value upon the sale of Springer Eubank, while minimizing the number of transactions required to divest the Company’s assets, and retaining certain key real estate.
Solution
Matrix provided merger and acquisition advisory services to Springer Eubank, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction. Matrix executed a customized sale process to solicit offers for the entire company and for discrete operating divisions to determine how value would best be created.
Multiple offers were received, and Petroleum Marketing Group, Inc. (“PMG’) was selected as the acquirer based on their competitive offer on all assets.
Matrix assisted in the negotiation of the purchase agreement as well as coordinated the due diligence and closing process.
The transaction with PMG closed in November 2023.
Situation
Superior Plus Corp. (TSX:SPB) is one of the largest distributors of propane, refined fuels, compressed natural gas, and renewable energy solutions across North America, servicing over 930,000 residential and commercial customers throughout the United States and Canada.
One of the Company’s subsidiaries, Superior Plus Energy Services Inc. (“Superior” or the “Company”), operates a substantial propane and refined fuels distribution network in the United States.
The Company’s heating oil and refined fuels operations in the northeast were comprised of a large network of distribution and logistics assets with critical mass in three distinct markets: (i) New York, (ii) Pennsylvania, and (iii) Southern New England. In total, these three markets serviced over 32,000 residential and commercial customers through 30+ bulk storage facilities (the “Business”).
Matrix was initially retained to perform a strategic review of each geographic market, and the entire Business, in order to explore various potential exit options.
The Company’s Board of Directors and management team ultimately decided to divest all three geographic markets in order to redeploy the capital into other areas within the Superior Plus Corp. organization.
Objective
To customize, execute, and complete a confidential sale process that would allow the Company to realize maximum value for the assets.
Solution
Matrix provided merger and acquisition advisory services to Superior, which included valuation advisory, marketing of the Business through a confidential, structured sale process, and negotiation of the transaction.
The sale process included a buyer pool of privately owned, regional and national heating oil and refined fuels distributors; large, public companies; and a select pool of private equity-backed fuels distributors. Matrix executed a customized sale process to solicit offers for the entire Business as well as each separate geographic market to determine the best path for maximizing value.
Multiple offers were received, and ultimately it was determined that maximum value for the Business, and greatest deal certainty, could be achieved by selling all three markets to one buyer.
Matrix assisted in the negotiation of the purchase agreement, a transition services agreement, multiple shared site agreements, and coordinated the due diligence process and closing.
The transaction with Mirabito Holdings, Inc. (“Mirabito”) closed in October 2023.
Situation
H.A. Mapes, Inc. (“H.A. Mapes” or the “Company”) was a leading petroleum marketer, convenience store operator, and fuels distributor that operated throughout New England.
The Company was founded in 1936 as a heating oil provider that served customers in Springvale, Maine and the surrounding areas. Heating oil was H.A. Mapes’ primary focus until the 1980s, at which point the Company added a motor fuels distribution business. The Company divested its heating oil supply business in the early 2000s and began building out its convenience retail operations in 2016.
In 2019, the Company engaged Matrix to analyze a potential sale of the Company. Matrix provided a market valuation and advised on possible ways to better position the Company to derive additional value in the event of a sale. The shareholders of the Company decided to focus on implementing related initiatives to maximize the value of a future sale.
After executing many of the suggestions provided by Matrix, the Company reengaged Matrix in 2022 to update the previous valuation work. After reviewing an updated valuation, the shareholders elected to retain Matrix to facilitate the sale of the Company.
At the time of the sale, the Company’s asset base consisted of 13 retail locations, ~80 wholesale customers, and a sizeable fuels transportation business.
Objective
To customize, execute, and complete a confidential sale process in a way that would allow H.A. Mapes to realize maximum after-tax value.
Solution
Matrix provided merger and acquisition advisory services to H.A. Mapes, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of an asset purchase agreement.
Multiple competitive offers were received and Nouria Energy Retail, an affiliate of Nouria Energy, was selected as the buyer.
Matrix assisted in the negotiation of the purchase agreement and coordinated the due diligence and closing process.
The transaction with Nouria Energy closed in August 2023.
Situation
Founded in 1898 by local entrepreneur Louis Goldish, American Producers Supply Co., Inc. (“American Producers”) operates as a value-added distributor of industrial and construction supplies across 13 branch locations housed across six states.
Family-owned through the entirety of its history, Chris Brunton was the Company’s sole shareholder at time of sale. In 2010, Mr. Brunton onboarded Joe Wesel to help lead American Producers’ growth and expansion into new end markets and locations.
Objective
Matrix was engaged by Mr. Brunton to help achieve a personal liquidity event, while providing American Producers the opportunity to source capital as it looked to complete several growth initiatives, namely the acquisition of branches in new geographic territories.
Solution
Matrix marketed the business to a broad universe of strategic and financial investors and successfully negotiated the purchase of the business with a private equity group with previous industry experience, at a value containing the fully marketed adjusted EBITDA figure.
Conviction in the new partnership, and Company growth opportunities that will come through it, led both Mr. Brunton and Mr. Wesel to roll equity into the new enterprise.
Matrix recommended a sell-side quality-of-earnings analysis be performed by a third-party accounting firm, which provided surety around American Producers’ historical earnings base and accounting processes, and ultimately assisted with the buyer’s diligence processes.
Situation
Vital Plastics, Inc. (“Vital”) is a leading manufacturer of injection molded plastic parts and components for use in automotive, building products, and industrial end markets, among others.
A decade prior to Matrix’s engagement, majority owner, Terry Townsend, passed the business’ day-to-day responsibilities over time to George Hauser and thereafter to Matt Fish, both of whom formed the rest of the Company’s ownership group.
Objective
Matrix was retained by Vital’s ownership group to initiate a sale process to provide Mr. Townsend and Mr. Hauser with a full liquidity event as they looked to retire in the near future, while simultaneously providing Mr. Fish an opportunity to maximize his within the Company alongside a new financial partner.
Management also sought partnership that would provide the Company with capital for continued growth while providing guidance towards process improvements and build-out of a stronger sales force.
Solution
Matrix presented Vital’s growing end market base and cutting-edge reporting and technological capabilities to a broad universe of financial and strategic buyers, highlighting both the Company’s ability to outperform its competitors and its strong growth trajectory.
Successfully negotiated with an independent private equity group to acquire the business and enter into long-term related-party real estate leases, providing Mr. Townsend with a full liquidity event. Mr. Hauser and Mr. Fish also received meaningful liquidity, with Mr. Fish taking on a more significant leadership position in the go-forward enterprise.
Situation
Antilles Power Depot, Inc. (“Antilles”), headquartered in Puerto Rico, is a leading distributor of backup power generation, marine generation, and marine propulsion equipment in the greater Caribbean region.
In 2002, nearly 15 years after the Company’s founding, Antilles expanded its equipment sales business unit to serve the lawn & garden market, offering customers access to best-in-class mowing and electric products from blue-chip vendors such as Stihl.
Objective
Matrix was engaged to facilitate a full divestiture of the lawn & garden business unit from Antilles.
Solution
Matrix marketed the business unit to a targeted universe of Puerto Rican financiers and operating companies, ultimately selecting a privately-financed strategic operator looking to gain access to Antilles’ strong customer and vendor networks.
Successful carve-out of the lawn & garden division, alongside negotiation of amenable lease terms, allowed Antilles to focus on its core generator business and management-identified initiatives aimed at poising the business for continued growth.
Situation
WTG Fuels Holdings LLC (“WTG Fuels” or the “Company”), is a large, diversified fuels distributor and convenience retailer with operations across west Texas and southeast New Mexico. The Company is a subsidiary of West Texas Gas, Inc., which is majority owned by Stonepeak Infrastructure Partners (“Stonepeak”).
Prior to the close of the transaction, the Company’s assets included a chain of 24 high-volume convenience stores operating under its proprietary Uncle’s brand, a large network of 68 cardlocks operating under its proprietary Gascard brand, and a propane & refined products delivered fuels business serving a diverse customer base of both residential and commercial accounts.
Matrix was initially retained to perform a strategic review of the enterprise in order to explore various potential exit options, including the possibility of a break-up sale to multiple different buyers.
Stonepeak ultimately decided to divest the WTG Fuels enterprise to focus on growing its large natural gas processing and distribution operations.
Objective
To customize, execute, and complete a confidential sale process that would allow the Company’s shareholders to realize maximum after-tax value.
Solution
Matrix provided merger and acquisition advisory services, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction. The sale process included a buyer pool of regional and national convenience store operators, petroleum marketers, propane & refined fuels distributors, as well as private equity groups seeking an industry platform.
Matrix executed a customized sale process to solicit offers for the entire company and for discrete operating divisions to determine the best path forward.
Multiple competitive offers were received, and ultimately it was determined that maximum value for the shareholders could be achieved by selling the Uncle’s stores and Gascard locations to GPM Investments, a wholly owned subsidiary of ARKO Corp (Nasdaq: ARKO), while selling the delivered fuels operations to a separate buyer.
Matrix assisted in the negotiation of the asset purchase agreement, a transition services agreement, multiple shared site agreements, and coordinated the due diligence process and closing.
The transaction with GPM Investments closed in June 2023 and the transaction for the delivered fuels business is expected to close during the first quarter of 2024.
Situation
Boyett Petroleum, Inc. (“Boyett” or the “Company”) is a third generation, privately held company headquartered in Modesto, CA. Boyett was founded in 1940 as an operator of gas stations and has since grown to become one of the largest independent fuel distributors in the United States, supplying fuel to more than 500 service stations and directly operating 10 high-performing convenience stores operating under the Cruisers store brand.
Matrix was retained to perform a valuation of the Company’s 10 Cruisers stores under two scenarios, including and not including the real estate in a sale. After considering the likely valuation that could be achieved, Boyett retained Matrix to advise on the divestiture of the Cruisers stores.
A successful sale of the stores would allow the Company to focus on and redeploy capital to its growing wholesale fuels distribution business.
Objective
To customize, execute, and complete a confidential sale process in a way that would allow Boyett to realize maximum after-tax value.
The Company also desired to retain the underlying real estate at the 9 company-operated stores they owned in fee and subsequently lease this highly desirable real estate to the buyer.
Solution
Matrix marketed the Cruisers stores, with or without real estate, through a confidential, targeted, structured sale process.
Multiple competitive offers were received. One bidder, United Pacific, offered to sell its sizeable wholesale fuels distribution business to Boyett in a separate transaction should its offer be accepted.
United Pacific’s unique transaction structure allowed Boyett to simultaneously achieve its goals of exiting retail, retaining the fee real estate at 9 of the Cruisers stores, and growing its wholesale fuels distribution business.
Matrix provided sell-side and buy-side advisory services on the transactions, including valuation advisory, marketing the Cruisers stores, negotiation of purchase agreements, negotiation of the post-closing lease agreements for the real estate properties retained by Boyett and coordinating the due diligence processes.
The acquisition of United Pacific’s wholesale fuels business was completed in April 2023 and the sale of the Cruisers stores was completed in May 2023.
Situation
Boyett Petroleum, Inc. (“Boyett” or the “Company”) is a third generation, privately held company headquartered in Modesto, CA. Boyett was founded in 1940 as an operator of gas stations and has since grown to become one of the largest independent fuel distributors in the United States, supplying fuel to more than 500 service stations and directly operating 10 high-performing convenience stores operating under the Cruisers store brand.
Matrix was retained to perform a valuation of the Company’s 10 Cruisers stores under two scenarios, including and not including the real estate in a sale. After considering the likely valuation that could be achieved, Boyett retained Matrix to advise on the divestiture of the Cruisers stores.
A successful sale of the stores would allow the Company to focus on and redeploy capital to its growing wholesale fuels distribution business.
Objective
To customize, execute, and complete a confidential sale process in a way that would allow Boyett to realize maximum after-tax value.
The Company also desired to retain the underlying real estate at the 9 company-operated stores they owned in fee and subsequently lease this highly desirable real estate to the buyer.
Solution
Matrix marketed the Cruisers stores, with or without real estate, through a confidential, targeted, structured sale process.
Multiple competitive offers were received. One bidder, United Pacific, offered to sell its sizeable wholesale fuels distribution business to Boyett in a separate transaction should its offer be accepted.
United Pacific’s unique transaction structure allowed Boyett to simultaneously achieve its goals of exiting retail, retaining the fee real estate at 9 of the Cruisers stores, and growing its wholesale fuels distribution business.
Matrix provided sell-side and buy-side advisory services on the transactions, including valuation advisory, marketing the Cruisers stores, negotiation of purchase agreements, negotiation of the post-closing lease agreements for the real estate properties retained by Boyett and coordinating the due diligence processes.
The acquisition of United Pacific’s wholesale fuels business was completed in April 2023 and the sale of the Cruisers stores was completed in May 2023.
Situation
Li’l Thrift Food Marts, Inc. (“Li’l Thrift” or the “Company”) is a leading North Carolina petroleum marketer and convenience retailer, with 43 company-operated sites concentrated in Fayetteville and the surrounding area operating under the proprietary Short Stop store brand.
The Company was founded in 1971 by Vance B. Neal with a single store in Burlington, NC.
With the 1985 acquisition of E-Z Shop, Li’l Thrift nearly doubled its marketing footprint with an additional 23 stores in North Carolina. The Company continued to build its presence in the Fayetteville market in 2004, purchasing another seven Exxon-branded locations.
Vance Neal’s children, Chris Neal and Mary Morketter, took up leadership as the Company’s President and Vice President in 2010 and continued to build upon their father’s legacy. They worked to modernize the portfolio’s IT systems and operations with scanning and fuel equipment software, but remained truly committed to the Company’s high standards of cleanliness and service.
Objective
To customize, execute, and complete a confidential sale process that would allow the Company’s shareholders to realize maximum after-tax value upon the sale of Li’l Thrift, while retaining certain key real estate and negotiating a post-closing fuel supply relationship between the buyer and the shareholders’ separate wholesale fuel company.
Solution
Matrix provided merger and acquisition advisory services to Li’l Thrift, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction.
Multiple competitive offers were received, and Petroleum Marketing Group, Inc. (“PMG) was ultimately selected as the acquirer.
Matrix assisted in the negotiation of the purchase agreement and corresponding post-closing lease, as well as coordinated the due diligence and closing process.
The transaction with PMG closed in April 2023.
Situation
Alpena Oil Company, Inc. (“Alpena Oil” or the “Company”) was a leading northern Michigan based grocery and convenience retailer.
Alpena Oil dates back to 1849, when Jeremiah Douville, the great-grandfather of the Company’s current ownership, opened a single bakery in Alpena, Michigan. The second generation of the Douville family expanded into grocery wholesaling, which remained the primary business until the family acquired its first gas station portfolio in 1996.
Jere Johnston, the Company’s President, focused on growing the chain through larger format stores and shortly thereafter opened the first Louie’s Fresh Market in Alanson, Michigan. The original Louie’s Fresh Market was a success and the catalyst for the five additional large format grocery stores that followed.
The shareholders decided it was time to exit the industry to focus on retirement and diversify family wealth.
Objective
To customize, execute, and complete a confidential sale process that would allow the Company’s shareholders to realize maximum after-tax value upon the sale of Alpena Oil.
Solution
Matrix provided merger and acquisition advisory services to Alpena Oil, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction.
Multiple competitive offers were received, and Blarney Castle Oil Co. was ultimately selected as the acquirer.
Matrix assisted in the negotiation of the purchase agreement and coordinated the due diligence and closing process.
The transaction with Blarney Castle closed in January 2023.