Press Releases

Matrix’s Downstream Energy & Retail Group Advises on Eighteen M&A Transactions with Combined Transaction Value of Over $1.5 Billion in 2015

RICHMOND, VA – February 2, 2016 – The Downstream Energy & Retail Group of Matrix Capital Markets Group, Inc. (“DER Group”) continued to be the most active transactional advisory services provider to downstream energy and convenience retailing companies in 2015, successfully advising on eighteen (18) M&A transactions that closed during the year. The clients the DER Group advised in 2015 included public companies, multi-generational privately-held companies, and a Foundation, and many of the transactions involved iconic companies and/or industry leaders, including; Warren Equities, Tedeschi Food Shops, Pester Marketing Company, Erickson Oil Products, Biscayne Petroleum and Everglades Petroleum, and Kocolene Marketing. There were seventeen (17) different buyers in these transactions, including Global Partners LP (NYSE:GLP), Petroleum Marketing Group, 7-Eleven, Inc., CrossAmerica Partners LP (NYSE:CAPL), TravelCenters of America LLC (NYSE:TA), Sunoco LP (NYSE:SUN), Quality Oil Company and World Fuel Services, Inc. (NYSE:INT). In addition to these transactions, the twelve (12) investment bankers in the DER Group, who are solely dedicated to advising companies in these industries, managed a number of other confidential valuation and corporate advisory assignments.

Thomas Kelso, Managing Director & Head of Matrix’s Downstream Energy and Retail Group commented, “We congratulate all of our clients on their successes which, in many cases, represent the work of multiple generations. We thank them for the confidence and trust they had in our DER Group when they chose to exit the industry and we wish them all well in their next endeavors.”

We’re Known By The Work We Do.
Contact:
Tom Kelso, Managing Director, Head of Downstream Energy & Retail Group | 667.217.3330 | tkelso@matrixcmg.com
Richmond | Baltimore | Chicago

by Kelly Simons

Matrix Announces the Successful Sale of Alta East, Inc.’s Fuels Distribution Business

RICHMOND, VA - December 16, 2015 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of Alta East, Inc. and certain related entities’ (collectively the “Company”) fuels distribution business to a wholly owned subsidiary of Sunoco LP (NYSE: SUN). The Company, headquartered in Middletown, NY, owns or leases 30 convenience stores that it leases to dealers and supplies fuels to and also supplies fuels to additional dealer owned and operated stores primarily in New York from the greater New York City metropolitan area to just north of Lake George. The Company distributes approximately 55 million gallons of Sunoco, Mobil, Valero, and unbranded motor fuels annually. The Company’s two non-operating surplus properties were also included as part of the transaction.

Alta East, Inc. is 100% owned by D.W. Porto. After taking the reins of the Company in 1990, Mr. Porto grew the business, through both acquisitions and organic growth, into an established, large distribution business with long-standing dealer relationships. Over just the last five years, the Company added twenty-three dealer sites to its portfolio, including five stores in upstate New York from a Nice N Easy franchisee in 2013.

Matrix provided merger and acquisition advisory services to the Company, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Cedric Fortemps, Managing Director and Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Team. Stephen Lynch, Senior Associate also advised on the transaction.

Mr. Porto commented, “I greatly appreciate the service that Matrix provided finding the best purchaser for the motor fuel portion of my business. I chose Matrix because of their expertise in completing transactions in the fuels distribution space. I would recommend Tom, Cedric and Matrix to anyone ready to sell their business.”

Mr. Fortemps commented, “Mr. Porto has built a sizeable and attractive distribution business in New York and it was a pleasure working with him and his team on a successful sale.” Mr. Kelso added, “I have known D.W. for nearly twenty-five years and it is an honor to have been able to advise him in exiting the business.”

Al Alfano and Doug Mitchell of Bassman, Mitchell & Alfano, Chtd. served as legal counsel for the Company.

by Kelly Simons

Matrix Announces the Successful Sale of Biscayne Petroleum, LLC and Everglades Petroleum, LLC

RICHMOND, VA – November 10, 2015 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of Biscayne Petroleum, LLC and Everglades Petroleum, LLC (collectively the “Company”) to 7-Eleven, Inc. and its wholly owned subsidiary, SEI Fuel Services, Inc. The Company, headquartered in Miami, FL, owns and operates convenience stores and supplies fuels throughout primarily Miami, Dade, Palm Beach and Broward counties. The Company’s assets, all of which are being sold as part of the transaction, consist of a mix of 102 high-volume company operated, commission marketer, lessee dealer and supply only stores, with the Company owning the vast majority of the real estate at the stores.

Both Biscayne Petroleum and Everglades Petroleum were formed in 2011 for the purpose of acquiring convenience stores and gas stations that were being sold by ExxonMobil Corporation. The Company is led by Carlos Fontecilla and Arturo Zizold.  Mr. Fontecilla, whose entry into the industry began with the acquisition of a single gasoline service station in Miami in the late 1980’s, and Mr. Zizold, together managed a separate company in the industry at the time of the 2011 acquisitions.  They both recognized the tremendous opportunity that the stores being sold by ExxonMobil had.  Through those initial acquisitions and several smaller ones over the years, the Company achieved significant scale and market share within its markets.

Matrix provided merger and acquisition advisory services to the Company, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Cedric Fortemps, Managing Director and Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Team. Vance Saunders, Director and Stephen Lynch, Senior Associate also advised on the transaction.

Mr. Fontecilla commented, “Matrix’s guidance and professionalism was extremely helpful in the parties achieving a positive outcome. Working with Tom Kelso, Cedric Fortemps and their team was instrumental in seeing this transaction through to the end.”

“We are very pleased to have worked with Cedric, Tom, Vance and Stephen on this transaction,” said Mr. Zizold, the Company’s Chief Executive Officer. “Having to sell our company was a difficult decision. Yet, Matrix’s advisory work from start to finish was outstanding. We are proud of all that has been accomplished with their support, and from our employees and our dealer partners. We also are pleased to have 7-Eleven and SEI Fuels assume ownership of our sites.”

Mr. Fortemps commented, “We are honored to have advised Arturo and Carlos on this transaction. They have built a remarkable company in a very unique market and it was a pleasure working with them to achieve their goals and to ensure that its legacy, dealers and customers would be taken care of after their exit.” Mr. Kelso added, “While these were excellent assets when they were acquired from Exxon, Arturo and Carlos did a tremendous job solidifying and improving the performance in a very short period of time, which significantly improved their value.”

David Yates and Fernando Alonso of Hunton & Williams LLP served as legal counsel for Biscayne Petroleum, LLC and Everglades Petroleum, LLC.

by Kelly Simons

Matrix Announces the Successful Sale of Pester Marketing Company & Subsidiaries

RICHMOND, VA - October 30, 2015 - Matrix Capital Markets Group, Inc. ("Matrix") announces the successful closing on the sale of one hundred percent of the equity securities of Pester Marketing Company and its wholly owned subsidiaries, Alta Fuels, LLC and Alta Transportation, LLC (“Pester” or the “Company”) to World Fuel Services, Inc. (NYSE:INT). Pester, headquartered in Denver, CO, is an operator of 57 retail convenience stores and two terminals, and a distributor of biofuels and lubricants to wholesale, commercial and agricultural customers. The Company also transports motor fuels to certain Pester retail stores and to the wholesale, commercial and agricultural customers it supplies. The Company’s convenience stores are located in Colorado, Kansas, Nebraska, and New Mexico.

Founded in Iowa in 1955, Pester has been built by respected energy industry leader, Jack Pester, Chairman, whose energy career has spanned more than 50 years. Mr. Pester’s diverse industry background throughout multiple segments of the energy stream, with a primary focus on downstream and midstream operations, provided him the experience to develop Pester into one of the largest and uniquely integrated privately-held convenience retailers and petroleum marketing companies in the U.S. Mr. Pester is complemented by other deeply experienced senior executives including: Richard Spresser, President and CEO; Terry Lacy, EVP/CFO; Aaron Hackerott, EVP of Sales and Supply; and Jim Sammons, President of Alta Fuels.

Matrix provided merger and acquisition advisory services to Pester, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Spencer Cavalier, Managing Director and Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Team. Tod Butler, Vice President; Sean Dooley, Senior Associate; and Christian Klawunder, Senior Analyst also advised on the transaction.

Mr. Pester commented, “Pester Marketing Company has been built by many great employees, who have been committed to its long-term success and culture. Through its prior acquisitions, World Fuel Services has demonstrated its commitment to retaining employees and the cultures that built those successful companies.”

Mr. Cavalier commented, “We are extremely happy for Jack and his fellow shareholders, and we are honored to have advised them for many years on financial transactions, capital raising and valuation. With the acquisition by extremely well-managed and industry leading World Fuel Services, Inc., Pester should continue its strong growth in the Rocky Mountain region.” Mr. Kelso added, “It is an incredible honor to represent Mr. Pester as he exits the industry he has done so much to shape. We wish him well in his future endeavors.”

Christopher Sackett, Jonathan Napier, and John Hunter, of BrownWinick served as legal counsel for Pester.

by Kelly Simons

Matrix Announces the Successful Sale of Stop-a-Sec Stores

RICHMOND, VA – October 28, 2015 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of eight stores owned by Stop-a-Sec, Inc. and Seck Enterprises Inc. of Luck, Wisconsin (collectively the “Company”) to TravelCenters of America LLC (NYSE: TA). All eight of the sites were owned in fee. The stores are located in Western Wisconsin and serve the communities of Balsam Lake, Cushing, Grantsburg, Luck, Osceola, Minong, Webster and Woodville, Wisconsin.

Stop-a-Sec, Inc. was founded in 1989 by Ed and Jody Seck with just one store in Luck, Wisconsin. Ed and Jody grew the business through a combination of new builds and acquisitions to the eight stores being sold to TravelCenters of America LLC. The eight stores have operated as Holiday franchised stores and have provided high quality fuel and a full range of convenience store items to the communities they serve.

Matrix provided merger and acquisition advisory services to Stop-a-Sec, Inc. and Seck Enterprises, Inc., which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Spencer Cavalier, Managing Director and John Underwood, Director. Andrew LoPresti, Associate also advised on the transaction.

Ed Seck, President of Stop-a-Sec, Inc. and Seck Enterprises, Inc. said, “Matrix did a great job in leading the sales process, maximizing value for our stores and working with our legal counsel to negotiate the transaction. We are pleased that TA will be retaining our existing employees.  Along with our daughters, Shannon and Jennifer, we have operated our stores as a family business for 26 years and will truly miss the convenience store industry. It was not an easy decision to sell, however we are confident that our employees and customers are in good hands and look forward to seeing positive changes for them all. We appreciate each and every employee and customer. We greatly appreciate the hard work John Underwood and his team at Matrix, along with the law firm of Winthrop & Weinstine led by Mark Johnson, did in bringing things to a successful close.”

Mr. Underwood commented, “It was a real pleasure to work with Ed and Jody and the Stop-a-Sec family. They have built a very strong family business and it was a privilege to work with them on the sale of their stores.”

Mark Johnson, Tami Diehm and Noreen Sedgeman of Winthrop & Weinstine, P.A. served as legal counsel for Stop-a-Sec, Inc. and Seck Enterprises, Inc.

by Kelly Simons

Matrix Announces the Successful Sale of Kocolene Marketing, LLC’s Convenience Store Assets

RICHMOND, VA – September 24, 2015 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of Kocolene Marketing, LLC’s (the “Company”) convenience store assets to Alimentation Couche-Tard, Inc. (TSX: ATD.A, ATD.B), through its wholly-owned subsidiary, Mac’s Convenience Stores, LLC (collectively “Couche-Tard”). The Company’s assets acquired by Couche-Tard include thirteen (13) company operated convenience stores with motor fuel offerings in Indiana and Kentucky, as well as the underlying real estate at twelve (12) of the locations.

Kocolene Marketing, LLC is a large fuels distribution, petroleum marketing and convenience store company based in Seymour, Indiana with operations in Indiana and Kentucky. After the sale, the Company will continue to operate a wholesale motor fuels distribution business, seven (7) company operated retail fuel outlets, and fourteen (14) Smoker’s Host retail tobacco stores. The Company is a wholly owned subsidiary of Kocolene Development Corporation (“Kocolene”), a fourth generation, family run business founded in 1938 by Carrie M. Myers and currently managed by Gary F. Myers, Chairman and CEO of Kocolene, Andrea S. Myers, President of Kocolene Marketing, and Kevin Johnson, Executive VP & CFO of Kocolene Marketing, who was integral to managing the transaction process on behalf of the Company. Kocolene also owns controlling interests in Ranger Enterprises, LLC, a warehousing, logistics, and recycling business, and Komack Environmental, LLC, an environmental remediation services company. Kocolene is 100% owned by the Kocolene Development Corporation Employee Stock Ownership Plan.

Matrix provided merger and acquisition advisory services to Kocolene, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Cedric Fortemps, Managing Director and Vance Saunders, Director. Tom Kelso, Managing Director and Head of Matrix’s Downstream Energy & Retail Group, Stephen Lynch, Senior Associate, and Kyle Profilet, Analyst, also advised on the transaction.

Gary Myers, Chairman and CEO of Kocolene said, “Kocolene is pleased to be transitioning our loyal customers and dedicated team members to one of the respected leaders in the convenience store industry. I feel all will benefit from this transaction long term, which was an important goal as we close a 77 year chapter of our company’s history. We were very pleased with the services Matrix provided our management team as we navigated through the process. Our goal to close this transaction was very aggressive. We chose Matrix because of their demonstrated expertise in completing transactions efficiently.”

Tom Kelso, Managing Director & Head of Matrix’s Downstream Energy and Retail Group said, “We are honored to have been trusted by the Myers family and the other shareholders to advise them on such an important transaction impacting the future of their company.” Cedric Fortemps added, “We greatly enjoyed working with the entire Kocolene team and appreciate all of their hard work which was required in order to successfully close the transaction within approximately five months of Matrix being engaged.”

John Millspaugh, James Moloy, Andrew Harwell, and Angela Stephens Tarter of Bose McKinney & Evans LLP served as legal counsel for Kocolene.

by Kelly Simons

Matrix's Downstream Energy & Retail Group Announces Three Successful Sell-Side Advisory Assignments, Brings 2015 Firm-Wide Transaction Closings to Seventeen

RICHMOND, VA – September 22, 2015 - Matrix Capital Markets Group’s Downstream Energy & Retail team has successfully completed three sell-side advisory assignments in the month of August, bringing the total of firm-wide transactions to seventeen so far for this year.

Matrix provided merger and acquisition advisory services, which included valuation advisory, marketing of the Companies through a customized, confidential, structured sale process, and negotiation of the transaction for the following clients:

• Thoroughbred Energy, LLC’s and its related entities’ (“Thoroughbred” or the “Company”) petroleum marketing and convenience store assets were sold to an undisclosed buyer.

Thoroughbred is based in Lexington, Kentucky with operations clustered around the greater Lexington area and in southern Kentucky along Interstate 75. The portfolio of assets includes thirty-two (32) company operated convenience stores, two (2) dealer operated convenience stores and their related fuel supply contracts, and wholesale fuel supply contracts for another eleven (11) dealer locations.  Thoroughbred’s high quality convenience stores averaged 3,000 square feet and offered a wide variety of convenience merchandise and motor fuels at all of the locations. All of the stores are Shell branded.

The transaction was co-managed by Cedric Fortemps, Managing Director and Vance Saunders, Director. Thomas Kelso, Managing Director and Head of Matrix’s Downstream Energy & Retail Group, also advised on the transaction.

• Tedeschi Food Shops, Inc. and related real estate entities (collectively “Tedeschi” or “Company”) were sold to 7-Eleven, Inc.

Headquartered in Rockland, Massachusetts, Tedeschi is a leading convenience retailing and foodservice company located in the New England area, with stores in Massachusetts and New Hampshire. The convenience store chain is comprised of 181 stores.  Tedeschi directly operates 104 corporate stores and is a franchisor of 77 stores. The stores offer a full assortment of traditional convenience store merchandise, private label Tedeschi Select products, proprietary Tedeschi Fresh Foods made to order on-site and delivered from its own commissary, as well as beer, wine and liquor in select locations.

The transaction was co-managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Group and Spencer Cavalier, Managing Director. Sean Dooley, Senior Associate and Andrew LoPresti, Associate also advised on the transaction.

• GOGAS Corporation’s (“GOGAS” or the “Company”) assets were sold to Quality Oil Company, LLC (“Quality Oil”).

Prior to the sale, Wilmington, NC based GOGAS directly operated twenty (20) high volume retail motor fuel outlets in southeastern North Carolina with total annual fuel volumes of over 53 million gallons. Nineteen (19) of the sites were owned fee simple with the remaining site leased from a third party. The GOGAS portfolio consists of large, well maintained fueling facilities with modern equipment designed to maximize fuel traffic. Each site features a kiosk style building for accepting fuel payments and selling top-tier cigarettes at the lowest prices in their markets. As part of the transaction, Quality Oil has also acquired the GOGAS brand, which is very well respected and a primary reason for the Company’s loyal customer base. All of the Company’s eligible store employees and field staff were retained by Quality Oil.

GOGAS is a wholly owned subsidiary of K. E. Austin Corporation, a private company founded by Kit and Deborah Austin in 1976. The Company started with two stores and has grown over the years through acquisitions of individual sites and building new-to-industry gas stations. Kit Austin, the Company’s President, continued to manage day-to-day operations up until the closing of the transaction. The sale represents a complete exit for him from the motor fuels business.

The transaction was co-managed by Cedric Fortemps, Managing Director and Vance Saunders, Director. Kyle Profilet, Analyst, also advised on the transaction.

by Honor Carver

Matrix Announces the Successful Sale of Tedeschi Food Shops, Inc. and Related Real Estate Entities

RICHMOND, VA – August 25, 2015 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of Tedeschi Food Shops, Inc. and related real estate entities (collectively “Tedeschi” or “Company”) to 7-Eleven, Inc.

Headquartered in Rockland, Massachusetts, Tedeschi is a leading convenience retailing and foodservice company located in the New England area, with stores in Massachusetts and New Hampshire. The convenience store chain is comprised of 181 stores.  Tedeschi directly operates 104 corporate stores and is a franchisor of 77 stores. The stores offer a full assortment of traditional convenience store merchandise, private label Tedeschi Select products, proprietary Tedeschi Fresh Foods made to order on-site and delivered from its own commissary, as well as beer, wine and liquor in select locations.

The Company traces its roots back to 1923, when Angelo Tedeschi opened a small store in Rockland, MA. Four generations of Tedeschi family members and dedicated employees have worked to ensure that the Tedeschi brand continues to be synonymous with high quality offerings, friendly service, and strong community support.

Tedeschi has always been recognized as a leading convenience retailer, and management’s ability to evolve its brand and convenience store offerings have enabled them to stay relevant with a broader consumer base, increase viability well in to the future, and support ancillary but complementary business models. The Company’s most recent growth and evolution have been led by Peter Tedeschi, who has served as President and CEO since 2009. Tedeschi’s commitment to change has earned the Company numerous accolades, including being selected as the “2012 Convenience Store Chain of the Year” by Convenience Store Decisions.

Matrix provided merger and acquisition advisory services to Tedeschi, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Group and Spencer Cavalier, Managing Director. Sean Dooley, Senior Associate and Andrew LoPresti, Associate also advised on the transaction.

Peter Tedeschi commented on the process, “The decision to sell a family owned business like ours is never easy, especially when employees and franchisees have become part of your extended family. Our decision to engage Matrix to assist us with this process was as easy as it was obvious. Through the years we have had a number of opportunities to work with Matrix, and they always conducted themselves in a way that is commensurate with the high standards that we established for ourselves at Tedeschi’s. Their work is top notch, and the guidance that they provided us from start to finish was invaluable.”

Mr. Cavalier added, “Matrix has been very fortunate to have enjoyed a long-term relationship with Tedeschi Food Shops and its shareholders. Tedeschi has been an iconic brand in New England for many years, and we are honored to have advised the family and employees, who have worked diligently to build this extremely successful and leading convenience retailer.”

Marianne Ajemian, Paul Eklund, Matthew Gaughan and Kathryn Conde of Nutter, McClennan and Fish LLP served as legal counsel for Tedeschi.

by Kelly Simons

Matrix Announces the Successful Sale of GOGAS Corporation's Assets to Quality Oil Company, LLC

RICHMOND, VA - August 18, 2015 - Matrix Capital Markets Group, Inc. ("Matrix") announces the successful closing on the sale of GOGAS Corporation's ("GOGAS" or the "Company") assets to Quality Oil Company, LLC ("Quality Oil").

Prior to the sale, Wilmington, NC based GOGAS directly operated twenty (20) high volume retail motor fuel outlets in southeastern North Carolina with total annual fuel volumes of over 53 million gallons. Nineteen (19) of the sites were owned fee simple with the remaining site leased from a third party. The GOGAS portfolio consists of large, well maintained fueling facilities with modern equipment designed to maximize fuel traffic. Each site features a kiosk style building for accepting fuel payments and selling top-tier cigarettes at the lowest prices in their markets. As part of the transaction, Quality Oil has also acquired the GOGAS brand, which is very well respected and a primary reason for the Company's loyal customer base. All of the Company's eligible store employees and field staff were retained by Quality Oil.

GOGAS is a wholly owned subsidiary of K. E. Austin Corporation, a private company founded by Kit and Deborah Austin in 1976. The Company started with two stores and has grown over the years through acquisitions of individual sites and building new-to-industry gas stations. Kit Austin, the Company's President, continued to manage day-to-day operations up until the closing of the transaction. The sale represents a complete exit for him from the motor fuels business.

Matrix provided merger and acquisition advisory services to GOGAS, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Cedric Fortemps, Managing Director and Vance Saunders, Director. Kyle Profilet, Analyst, also advised on the transaction.

Mr. Kit Austin, President of GOGAS said, "We are fortunate to have found a buyer that is based in North Carolina and matches GOGAS's culture of customer service, employee relations and vendor relationships. This will make for a seamless transition. We are very grateful for the wonderful loyal customer support that GOGAS has received over the last 39 years."

Mr. Fortemps commented, "It was a pleasure advising Mr. Austin on a successful sale of the tremendous business that he and his management team have built. We're extremely pleased to have found a buyer in Quality Oil that was eager to add the Company's strong employee base and unique format of stores to their growing portfolio." Thomas Kelso, Managing Director & Head of Matrix's Downstream Energy and Retail Group added, "It has been a great honor to represent Mr. Austin in his exit from an industry where he was a respected leader for so many years. We wish him much success in his future ventures."

W. Berry Trice of Murchison, Taylor & Gibson PLLC served as legal counsel for GOGAS.

Based in Winston-Salem, NC, Quality Oil Company is a large, diversified petroleum marketer and fuels distributor with operations throughout the southeast United States from Virginia to Florida. Its products and service lines include gas stations and convenience stores, wholesale motor fuels, commercial fuels and lubricants, heating oil and propane, motor fuels transportation, HVAC sales and service, and hotels.

by Kelly Simons