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
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.
vIn 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
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.
Situation
Community Service Stations, Inc. (“CSS” or the “Company”) was a leading New England based wholesale motor fuel distributor.
CSS was founded in Boston, MA in 1918 as a single service station that offered auto repairs and retailed motor fuels. In its first few decades, the Company expanded its fuel offerings into home heating oil and kerosene, constructing one of the first bulk heating oil and kerosene distribution depots in the suburbs west of Boston. Community also added two additional retail service stations.
Under the leadership of President Chris Riley, the Company grew fuel volume significantly, and in 2011 CSS became one of the four exclusive fuel distributors authorized and licensed by ExxonMobil to distribute Mobil (and Exxon) branded motor fuels in New England.
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 CSS.
Solution
Matrix provided merger and acquisition advisory services to CSS, 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 CrossAmerica Partners LP (NYSE: CAPL), 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 CAPL closed in November 2022.
Situation
Holt Oil Company, Inc. (“Holt” or the “Company”) is a leading petroleum marketing, convenience retailing, and QSR operator consisting of 19 sites and wholesale dealer business in the areas of Fayetteville and Wilmington, NC.
In 1930, William D. Holt founded the predecessor entity of Holt under the name Crystal Oil Co. in downtown Fayetteville.
The Company initially operated a few gasoline stations and later moved into the home heating oil business. Over four decades, the gasoline station count increased to 22 sites across four counties.
In 1987, Louis Cox joined the company as director of dealer operations and oversaw the construction of new-to-industry stores. He currently serves as Holt’s President. In 1989, Hannah Holt came on board and oversaw the company-operated convenience stores and spearheaded the first Subway franchise, and currently serves as Director of Operations and Secretary.
In 1992, Walter Holt joined the business and focused on the information technology and financial aspects of the company as a Vice President. In 1999, Bill Holt joined the business as a commercial gasoline account manager and as Treasurer; he later moved into store operations as the Merchandising Manager.
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 Holt and to secure post-closing employment for certain shareholders who were part of the executive management team.
Solution
Matrix provided merger and acquisition advisory services to Holt, 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 coordinated the due diligence and closing process.
The transaction with PMG closed in November 2022.
Situation
Green Castle Recovery Centers, LLC d/b/a Sanford Behavioral Health (“Sanford” or the “Company”) is the largest independently owned provider of behavioral health treatment services in Western Michigan, with operations in the greater Grand Rapids, Michigan region.
Originally founded in 2015 by David and Rae Green, Sanford is a family business that continues to be founder/owner-operated.
The Company began in a restored historic home in downtown Grand Rapids, Michigan as a 10-bed residential substance use disorder treatment center for women. The Greens had seen many Michiganders leaving the State in order to receive high-quality substance use disorder treatment and were motivated to try and fulfill this need close to home. Sanford then expanded by adding another home which served as a 20-bed residential treatment center for men.
As Sanford continued to expand, it also added outpatient programs to support its residential treatment as well as an outpatient eating disorder program.
Objective
Before the onset of the pandemic, the Greens looked to expand Sanford even further and began planning an 18-acre behavioral health campus in Marne, Michigan.
Located 12 minutes from downtown Grand Rapids, the new campus, once fully operational, will house 134 beds including detox, residential substance use disorder treatment, residential eating disorder treatment and residential psychiatric treatment, as well as several outpatient programs.
With the addition of the new campus, Sanford created Michigan’s first stand-alone residential eating disorder program.
To support the expansion of the business and development of additional programming, Sanford was seeking additional investors to provide growth capital.
Solution
Ultimately, capital was secured in the form of a combination of (i) Convertible Debt through a Regulation D offering, (ii) a Sale-leaseback on the Marne property with a publicly traded Real Estate Investment Trust, and (iii) a revolving loan.
Matrix provided capital markets advisory services to Sanford, including marketing the opportunity to a broad base of potential investors as well as a limited group of qualified investors for the Regulation D offering, navigating the process through a quickly evolving and tumultuous capital markets environment, advising on pricing and terms, streamlining the three-pronged solution, coordinating the various transaction counterparties, and ultimately achieving successful execution of the capital raise, positioning Sanford for future growth.
Situation
Tidewater Convenience Inc. (“Tidewater” or the “Company”) was incorporated in 1992 by Charles “Chuck” and Carol Weaver when they acquired two Texaco stores in Virginia Beach, VA. The Company experienced steady growth through the 1990’s and 2000’s as the business expanded with up to 17 convenience retailing and petroleum marketing locations at one time, carrying the BP and Shell flags.
Chuck and Carol Weaver have remained hands-on operators through their 30+ years of ownership.
At the time of sale, the Company operated 14 petroleum marketing and convenience retail stores, one company owned commission marketer location.
Matrix was engaged to perform a valuation of the Company.
After meeting to review the valuation and recommended sale process, the Weavers continued to operate the business.
Once the shareholders ultimately decided to exit the retail convenience store and petroleum marketing businesses to diversify family wealth and focus on retirement, they decided to attempt a one-off sales process without advisors. As their potential sale progressed, transaction complications and concerns over valuations arose, which led the Weavers to opt to engage Matrix to coordinate a structured sales process.
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 to Tidewater, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transactions.
Multiple competitive offers were received. Global Partners LP was ultimately selected as the acquirers for the assets, yielding significantly more value for Tidewater than their contemplated one-off sales process.
Matrix assisted Tidewater and their tax advisors to understand the tax implications of various transaction scenarios to maximize after-tax proceeds to the shareholders.
Matrix assisted in the negotiation of the purchase agreement and coordinated the due diligence and closing process.
The transaction with Global Partners LP closed in September 2022.
Situation
After successfully advising Tri Gas & Oil Co., Inc. (“Tri Gas & Oil”) on an acquisition in 2020, Tri Gas & Oil approached Matrix during the third quarter of 2021 regarding a very sizeable potential acquisition opportunity of Pep-Up, Inc. (“Pep-Up”), a leading propane, refined fuels and HVAC services company based on the Delmarva Peninsula.
Over the last 45 years, Pep-Up has grown to one of the largest suppliers of propane, refined fuels, and HVAC services on the Delmarva Peninsular. Pep-Up serves ~23,000 residential, agricultural, commercial, and industrial customers.
The McMahan family (shareholders of Tri Gas & Oil) and the Pepper family (shareholders of Pep-Up) had a longstanding friendship, and the Peppers were looking to transition their customers and employees to a company with similar values. The acquisition would be a perfect geographical fit relative to Tri Gas & Oil’s existing operations on Delmarva and increase its market share.
Objective
Matrix was engaged to advise Tri Gas & Oil on the valuation of the acquisition opportunity, to assist in the development of operating and financial assumptions, to provide guidance on the structure and terms of the offer and asset purchase agreement, and to assist Tri Gas & Oil with refinancing its credit facilities.
Solution
Matrix developed a comprehensive financial model to evaluate the acquisition and to analyze the projected post-acquisition performance of the consolidated company. The financial model included several unique scenarios that allowed for different operating and financial assumption sets to be utilized in order for Tri Gas & Oil to easily perform sensitivity analyses and to estimate returns on debt and equity for the acquisition.
Matrix assisted in preparing a letter-of intent (LOI) offer for the acquisition opportunity and advised on the terms of the asset purchase agreement.
Matrix developed a presentation outlining the key highlights of the acquisition and the projected performance of the consolidated entity post-closing. Alongside Tri Gas & Oil’s management, Matrix presented the financial model to lenders to help secure debt financing on the most favorable terms possible.
Tri Gas & Oil closed on the transaction in June 2022.
