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 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 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. (“Parker Oil”) was selected as the acquirer based on their competitive offer.

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.