Situation
Slidell Oil Company, LLC (“Slidell” or the “Company”), founded in 1948 and headquartered in Slidell, Louisiana, operated a petroleum marketing and retail fuels distribution business in Alabama, Louisiana, and Mississippi.

The Company’s asset base consisted of 16 commission marketer sites, one lessee dealer, and 23 wholesale supply accounts marketing under the Shell, Chevron, and Texaco fuel brands.

The 16 commission marketer sites were large, well-maintained stores and sported consistent branding and merchandise offerings, providing a buyer with the option to operate these stores and generate additional profitability.

The Company’s shareholders contacted Matrix in 2017 to discuss a potential transaction. Matrix provided the shareholders with a market valuation and discussed with them the primary value drivers for the business. The shareholders decided to focus on growing and improving the business to optimize value at a later date. Matrix advised on potential methods to derive additional value, including installing favorable provisions in commission marketer agreements that would allow a buyer to operate these stores if desired.

The shareholders reengaged Matrix in 2021 to update the valuation. The shareholders then made the strategic decision to divest their petroleum marketing and fuels distribution business in order to diversify their 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 the business.

Solution
Matrix provided merger and acquisition advisory services to Slidell, 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 Circle K Stores Inc. was ultimately selected as the acquirer.

Matrix assisted in the negotiation of the asset purchase agreement and the real estate lease agreements for assets where Slidell would retain real estate control post-closing, and also coordinated the due diligence and closing processes for the transaction. The transaction closed in December 2021.