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.