Situation
Mystic Oil Company, Inc. and its affiliates (“Mystic” or the “Company”), was a large fuels distributor in New England, selling fuels on a consignment and wholesale basis to approximately 150 Gulf, Citgo, ExxonMobil, Shell, and unbranded customers.

The Company was founded in 1956 by Aaron Agrin in Mystic, Connecticut. Mystic’s primary focus was on company operated convenience stores until 2008, at which point they divested of the company operated stores and focused on its growing wholesale fuels business.

In 2017, the business was transitioned to the fourth generation, when Peter Zelken became President of Mystic Oil. Under his leadership, Mystic grew significantly and became one of the leading fuels distributors in New England.

Matrix was initially retained to perform a valuation of the Company under a retained real estate scenario as well as a scenario where the real estate would convey to a potential buyer post-closing.

After analyzing both scenarios, Peter Zelken decided to engage Matrix to sell the business to diversify his wealth and focus 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 Company, while retaining certain key real estate.

Solution
Matrix provided merger and acquisition advisory services to Mystic, 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 August 2023.