Matrix Announces the Successful Sale of Dealers Building Supply, Inc.
RICHMOND, VA – October 6, 2016 – Matrix Capital Markets Group, Inc. (“Matrix”) is pleased to announce that it advised on the successful acquisition of Dealers Building Supply, Inc., d/b/a Dealers Wholesale (the “Company”) supported by The Firefly Group and Kocolene Development Corporation. The investment positions the Company to further enhance market penetration and expand its distribution capabilities. Matrix served as the exclusive advisor to Dealers Wholesale.
Dealers Wholesale, based in Indianapolis, IN, is a value-added distributor of doors, door hardware, and fireplaces to homeowners, professional contractors and developers in the residential and commercial end-markets. The Company was led by Mike and Jeff Roache for over thirty years. Together they worked to establish a reputation for customer service and quality and transferred those same core principles to the current management team.
The Firefly Group (www.thefireflygrp.com) invests in growth-oriented, lower middle-market companies in the Midwest. Kocolene Development Corporation (www.kocolene.com) operates several businesses in Indiana and also invests in companies in the Midwest.
About Matrix’s Building Products Group
Matrix’s Building Products Group has worked closely with many manufacturers, distributors, service providers, and retailers of building materials and related products. Over the years our professionals have gained a thorough understanding of the architectural specification and contractor bidding process, the impact of fluctuating commodity prices and the importance of inventory management. Team members have expertise within many sub-sectors including, architectural products, automation, cabinetry/hardware, concrete & masonry, decking, erosion control/geotextiles, fireplace construction, fire protection, flooring, furnishings/lighting, green build, HVAC, home automation, kitchen/bath, metal fabrication & erection, millwork, pipes valves & fittings, roofing, stone/hardscapes, waterworks and windows/doors.
Matrix Announces the Successful Sale of State Oil Company’s Retail Assets and Wholesale Fuels Distribution Business
RICHMOND, VA – September 27, 2016 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of State Oil Company and certain related entities’ (collectively “State Oil” or the “Company”) retail assets and wholesale fuels distribution business to CrossAmerica Partners LP (NYSE:CAPL) and its affiliates (collectively “CrossAmerica”).
Immediately prior to the closing of the transaction, the Company’s portfolio acquired by CrossAmerica consisted of three company operated retail convenience stores, 50 lessee dealers, 24 supply accounts, two non-fuel tenant locations, and three non-operating sites. The transaction included the real estate at 57 locations and the leasehold interest at one site; with the exception of one site located in Wisconsin, all of the stores are located in the greater Chicago metropolitan area. Also included in the transaction are the seller-financed land contracts associated with five of the Company’s supply accounts.
In separate but related transactions, four locations owned in fee simple by the Company were sold or are currently under contract to be sold to three other unrelated buyers.
After buying the Company in 1973, Peter and Bill Anest grew the Company over more than forty years into one of the largest petroleum distributors in the greater Chicago area. Over the past five years, Matrix has worked with State Oil as the Company and its owners have evaluated their strategic business plans, which ultimately culminated in the decision to sell the Company. Peter and Bill Anest, owners of State Oil, commented, “We greatly appreciate the advice and expertise that Matrix provided in the sale of the Company.”
Matrix provided merger and acquisition advisory services to State Oil, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, transaction structuring, and negotiation of the transaction. The transaction was co-managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Group, and John Underwood, Director. Stephen Lynch, Senior Associate, and John Duni, Senior Analyst, also advised on the transaction. Mr. Underwood commented, “It has been a pleasure to work with the Anest family and to assist them in the sale of the Company. We truly value the relationship that was built with the family over the past five years and the opportunity to represent State Oil.”
Richard Nikchevich and Jeremy Segal of Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel for State Oil.
Matrix Announces the Successful Sale of Budget Signs, LLC
RICHMOND, VA – September 27, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of Budget Signs, LLC (“Budget Signs” or the “Company”) to a Salem, Virginia-based franchisee of FASTSIGNS International, Inc. (“FASTSIGNS”). FASTSIGNS is a Carrollton, Texas-based portfolio company of Levine Leichtman Capital Partners. Matrix served as exclusive advisor to Budget Signs and the transaction was led by Mike Morrison, David Shoulders, William O’Flaherty and Pratik Thakral.
Budget Signs, headquartered in Roanoke, Virginia, is a full-service sign and crane company that fabricates, installs and services signs in western Virginia, southern West Virginia and northern North Carolina. The company has grown to become recognized as the locally-owned market leader in the geographies it serves and will continue to provide regional service and installation to its diverse customer base under FASTSIGNS’ ownership.
Ed Armentrout, President of Budget Signs commented, “We are very pleased to have transitioned the ownership of our business to a buyer committed to the continued success and long-term growth of Budget Signs. The Matrix team proved to be extremely valuable in running a highly disciplined process that identified a buyer that satisfied the objectives we were looking to accomplish.” David Shoulders, Director at Matrix, added, “It is clear that Ed and Tori Armentrout placed a tremendous amount of importance on securing the right fit for the employees of Budget Signs who helped build the business. We are thrilled that this transaction was successful for them personally and for the ongoing business culturally.”
About Matrix’s Business Services Group
Matrix’s Business Services Group merger & acquisition expertise stems from numerous engagements and extensive research in a number of segments, including call centers, marketing, printing & engraving, staffing, systems integration, tele-services, telecommunications, transportation, utility services and waste management. Team members draw upon a deep bench of transaction experience and analytical resources to successfully manage and complete a wide range of corporate finance transactions, including mergers, acquisitions, and capital raising of debt and equity.
About Matrix Capital Markets Group, Inc.
Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with additional offices in Baltimore, MD and Chicago, IL. Since 1988, Matrix has provided merger & acquisition and financial advisory services for privately-held, private-equity owned and publicly traded companies, including company sales, recapitalizations, corporate divestitures, corporate recovery, management buyouts, capital raises of debt & equity, corporate valuations and fairness opinions. Matrix has served clients in a wide range of industries, including downstream energy & retail, healthcare, industrial products, building products, lumber, consumer products and business services. For additional information or to contact our team members, please visit www.matrixcmg.com.
Securities offered by MCMG Capital Advisors, Inc., an affiliate of Matrix Capital Markets Group, Inc., Member FINRA & SIPC.
Matrix’s Business Services Group Announces Transaction Closing
RICHMOND, VA – July 12, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”), is pleased to announce the recapitalization of Business and Legal Resources (“BLR”) by Northcreek Mezzanine, Tenth Street Capital and management.
BLR, headquartered in Brentwood, TN, is a leading provider of compliance and training solutions in the B2B arena and offers a suite of web-based compliance products, mobile applications, employee training platforms, and digital and live professional development opportunities for the audiences it serves. The BLR parent brand comprises subsidiaries HRHero, MLeeSmith Publishers, HCPro, HealthLeaders Media, Patient Safety & Quality Healthcare, and Personnel Policy Service.
The recapitalization of BLR coincides with their acquisition of the HR, Environmental, and Healthcare assets of Thompson Information Services, another industry leader in compliance, from Columbia Books. This transaction also underscores BLR’s commitment to simplifying compliance for their audiences and expanding their market footprint through growth and partnership.
Matrix served as the exclusive financial advisor to BLR. The transaction was managed by Mike Morrison, David Shoulders, William O’Flaherty and Pratik Thakral.
About Matrix’s Business Services Group
Matrix’s Business Services Group merger & acquisition expertise stems from numerous engagements and extensive research in a number of segments, including call centers, marketing, printing & engraving, staffing, systems integration, tele-services, telecommunications, transportation, utility services and waste management. Team members draw upon a deep bench of transaction experience and analytical resources to successfully manage and complete a wide range of corporate finance transactions, including mergers, acquisitions, and capital raising of debt and equity.
Matrix Announces the Successful Sale of Mutual Oil Co., Inc.’s Unbranded Wholesale Fuels Distribution Business
RICHMOND, VA – June 1, 2016 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of Mutual Oil Co., Inc.’s (“Mutual” or “Company”) high volume unbranded wholesale refined fuels business to Truman Arnold Companies (“TAC Energy”), an independent national wholesale fuels distributor of refined petroleum products, headquartered in Dallas, Texas. Mutual distributes unbranded refined petroleum products to high volume retailers, resellers, commercial entities, governments and municipalities, and marinas in 17 states, with a focus on the Northeast and Mid-Atlantic regions.
Founded in 1937, Mutual has grown to become one of the largest and most diversified privately held petroleum distributors in the U.S. and enjoys a reputation of providing high quality products, service and logistics to its customers. The sale of the business to TAC Energy significantly expands the fuel supply, logistics capabilities, and support services that Mutual can provide to its current and future customers. Steve Shaer, Executive Vice President of Mutual Oil commented on the process, “As in the past, Matrix showed great professionalism in managing the process.”
Matrix provided merger and acquisition advisory services to Mutual, which included valuation advisory, transaction structuring, marketing and negotiating. The transaction was co-managed by Spencer Cavalier, Managing Director, and Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Group. Andrew LoPresti, Associate, also advised on the transaction. Mr. Cavalier commented, “This is a bittersweet end to a long-term advisory relationship with the Mutual shareholders and their extremely professional and talented management team. It’s been a relationship built on trust, allowing us to propose and execute on mandates to enhance shareholder value in a very deliberate manner. We greatly appreciate our relationship with Steve and Ed and their confidence in us.”
Jeffrey Leiter of Leiter & Cramer PLLC served as legal counsel for Mutual.
Matrix Announces the Successful Sale of District Petroleum Products, Inc. & Related Entities
RICHMOND, VA – May 31, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of District Petroleum Products, Inc. & Related Entities (the “Company” or “District Petroleum”) to an affiliate of Dunne Manning, Inc. The Company, headquartered in Huron, OH, owns and operates twenty-two (22) Hy-Miler convenience stores and distributes and transports motor fuels to branded dealers and marinas throughout Ohio.
District Petroleum was founded in 1951 by a group of Sandusky Ohio industrialists that needed fuel and lubricants for their factories, boats and airplanes. The Company eventually made the decision to contract with Shell Oil Company for all of its petroleum needs, and in the early years operated as a small jobbership, distributing gasoline to a few dealer-operated locations, as well as selling fuel oil to home heat customers and lubricants to industrial accounts. With gasoline marketing beginning to change with the advent of self-serve gasoline and competitive street pricing, the Hy-Miler brand was born in 1976. Hy-Miler then became the name of the convenience store chain as new stores were added.
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 Spencer Cavalier, Managing Director and Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Team. Sean Dooley, Vice President, and Christian Klawunder, Associate, also advised on the transaction.
Scott Stipp, President of District Petroleum, commented “This was a tough process; bittersweet. I could not imagine attempting to navigate these waters without the knowledge and support of Matrix and their team of professionals.“
Mr. Cavalier commented, “Mike and Scott Stipp along with their Chief Financial Officer, Timothy Donnelly, and V.P. of Retail Gary Gockstetter have built a very strong company over the decades, and we were honored to advise the shareholders through a complex transaction that resulted in a highly successful exit from the industry and the monetization of significant family capital.”
Russell Rosler, Frank Zonars, Kristin Watt and Theodore Smith of Vorys, Sater, Seymour and Pease LLP, served as legal counsel for District Petroleum.
Matrix Announces the Successful Sale of Harbor Petroleum of New England, Inc.'s, Contract Dealer Business
RICHMOND, VA – May 4, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of the contract dealer business owned by Harbor Petroleum of New England, Inc. (the “Company” or “Harbor Petroleum”) to SEI Fuel Services, Inc., a wholly owned subsidiary of 7-Eleven, Inc. The Company, headquartered in Naugatuck, CT, owns and operates convenience stores and supplies fuels throughout Connecticut.
John Baker started Harbor Petroleum in 1981 with one station in Naugatuck and grew the business to its current level over a 35 year period. Mr. Baker has elected to reduce the scale of Harbor Petroleum, but will continue to own and supply a small group of stations that he primarily retains a fee or leasehold interest in.
Matrix provided merger and acquisition advisory services to Harbor Petroleum, on the divestiture, which included valuation advisory, marketing of the assets 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 Team and John Underwood, Director. Vance Saunders, Director and Andrew LoPresti, Associate, also advised on the transaction.
John Baker, the owner of Harbor Petroleum, said “During the entire sales process, the analysts and individuals that represent Matrix were professional in every manner. I firmly believe that our Company obtained not only the broadest regional coverage exposure possible but a representative national exposure to qualified buyers as well."
Mr. Underwood commented, “Matrix is very happy to have helped John achieve his goal of selling the contract dealer business of Harbor Petroleum, we appreciated the opportunity to work with him to achieve his goals.”
Craig Sylvester and Christine Miller of Reid and Riege, P.C., served as legal counsel for Harbor Petroleum.
Matrix Celebrates Record Year in 2015, Announces Expansion of Industry Groups and Promotions
RICHMOND, VA – April 13, 2016 – Matrix Capital Markets Group, Inc. ("Matrix") is pleased to announce that it successfully advised on 25 merger and acquisition transactions in 2015. We would like to thank all of our clients for the privilege of working with them this past year and appreciate the trust they placed in us as their advisor.
The transactions included sell-side and buy-side advisory on company sales, recapitalizations and corporate divestitures for family owned, private equity owned and publicly traded companies. Our 21 investment banking professionals, who serve clients in the Downstream Energy & Retail, Healthcare, Consumer & Industrial Products and Building Products industries are passionate about helping our clients achieve the best result possible and are proud to have advised on transactions totaling over $1.6 billion in 2015.
In addition, Matrix would like to recognize certain individuals whose continued contributions to the firm and the clients we serve resulted in recent promotions.
Sean Dooley, CFA, ASA is a member of Matrix's Downstream Energy & Retail Group and has been promoted to Vice President. Since joining the firm in 2010, Mr. Dooley has been involved in over twenty successful transactions. He is a holder of the Chartered Financial Analyst designation and member of the CFA Institute. He received a B.S.B.A. with a concentration in Finance from East Carolina University.
Christian Klawunder has been a member of Matrix’s Downstream Energy & Retail Group since joining the firm in 2014 and has been promoted to Associate. Mr. Klawunder was previously an Analyst with Ewing Bemiss & Co. He received a B.B.A with a concentration in both accounting and finance, summa cum laude from Loyola University Maryland.
Matrix’s Downstream Energy & Retail Group and Healthcare Group have also added new team members.
Carlton Zesch, Analyst, who has been with Matrix since 2015 and has proven to be a valuable resource to multiple industry verticals within the firm, has joined Matrix’s Downstream Energy & Retail Group. He is a graduate of the University of Richmond’s E. Claiborne Robins School of Business where he received a B.S. in Business Administration with a concentration in Finance.
John Ellison, CFA, Associate, is now a member of Matrix’s Healthcare Group. Prior to joining Matrix in 2015, Mr. Ellison was an Associate with Ewing Bemiss & Company and an Equity Research Associate in the Engineering & Construction and Energy Infrastructure Group with BB&T Capital Markets. He graduated from the College of William & Mary with a B.A. in Finance and a second major in Economics. He is a CFA Charterholder and member of the CFA Institute.
About Matrix Capital Markets Group, Inc.
Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with additional offices in Baltimore, MD and Chicago, IL. Since 1988, Matrix has provided merger & acquisition and financial advisory services for privately-held, private equity owned and publicly traded companies, including company sales, recapitalizations, asset divestitures, corporate recovery, management buyouts, capital raises of debt & equity, corporate valuations and fairness opinions. Matrix has served clients in a wide range of industries, including building products, business services, consumer products, downstream energy & retail, healthcare, industrial products and lumber. For additional information or to contact our team members, please visit www.matrixcmg.com.
Securities offered by MCMG Capital Advisors, Inc., an affiliate of Matrix Capital Markets Group, Inc., Member FINRA & SIPC.
Matrix to Moderate SIGMA 2016 Spring Convention Opening General Session Panel
RICHMOND, VA - April 7, 2016 - SIGMA: America's Leading Fuel Marketers and Matrix Capital Markets Group, Inc. ("Matrix") are pleased to announce that Matrix will moderate the Opening General Session at the SIGMA 2016 Spring Convention, May 10-13, in Scottsdale, AZ, "Using Alternative Capital to Grow Your Company - Successful Entrepreneurs Share Their Experiences: Sam Susser, Joe Topper, and Hank Heithaus".
Some of the industry's most successful owners have chosen to employ alternative types of capital to grow their companies. Private equity, mezzanine debt, sale-leaseback, and asset based loan structures can be alternative avenues of capital to explore beyond owner's equity and traditional senior bank debt. Originated, structured and presented by Matrix's Thomas Kelso and Spencer Cavalier, this interactive panel will ask how leaders evaluate these forms of alternative capital and ultimately how these decisions are made to move to alternative capital to fuel company growth.
Panel participants in this high-level presentation include Hank Heithaus, CEO, Empire Petroleum Partners GP, LLC; Sam Susser, President, Susser Holdings II, LP; and Joseph Topper, Member of the Board of Directors for CST Brands and General Partner, CrossAmerica Partners, L.P. The Panel will be moderated by Thomas Kelso, Managing Director & Principal, Head of Matrix's Downstream Energy & Retail Group.
Hank J. Heithaus, joined Empire Petroleum in August, 2013 and has full P&L responsibility and directs all business operations and staff functions of the company. Mr. Heithaus, who has over 40 years of experience in the petroleum industry, plays an integral role in driving a more aggressive merger and acquisition agenda, thus enabling Empire to take more market share in the areas it serves, and develop business opportunities that will take them into new markets.
Sam L. Susser is the President of Susser Holdings II, L.P. From 1988 to 2014, Mr. Susser led the growth of Susser Holdings Corporation from a five store operation to a $6.7 billion enterprise that was a member of the Fortune 500 and employed 12,000 team members. The business was sold to ETP on August 29, 2014, and Mr. Susser continued to serve as Chairman of the Board until May 2015. Prior to founding the Southguard Corporation (predecessor to Susser Holdings) in 1988, Mr. Susser spent 1985-1987 with Salomon Brothers Inc in New York City and in Dallas in the corporate finance division and in the mergers and acquisitions group.
Joseph V. Topper currently runs the Topper Family office. He retired from CrossAmerica Partners in September 2015. Previous to selling Lehigh Gas Partners GP to CST Brands, he was the CEO and Chairman of the Board of Lehigh Gas Partners, a company taken public in October 2012. Mr. Topper serves as a member of the Board of Directors of CrossAmerica GP LLC, member of the Board of CST Brands, as Vice Chairman Board of Trustees for Villanova University and as a director of Lehigh Valley PBS.
Thomas E. Kelso is Head of Matrix Capital Markets Group's Downstream Energy & Retail Group and directs the firm's Baltimore office. He created the Downstream Energy Group in 1997 to provide financial advisory services to companies engaged in the petroleum marketing and convenience store industries. In addition, he manages the firm's Restructuring, Reorganization and Bankruptcy practice. He is a member of the Society of Independent Gasoline Marketers of America (SIGMA), the National Association of Convenience Stores (NACS), the NACS Hunter Club and the Turnaround Management Association (TMA). Mr. Kelso currently serves as Chairman of the Maryland Stadium Authority and as Vice Chair & Director of the Foundation for the Preservation of Government House of Maryland, Inc.
About SIGMA
Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. After fifty years of leadership, SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States. From the outset, the association has served to further the interests of both the branded and unbranded segment of the industry while providing information and services to members. SIGMA's approximately 260 corporate members command nearly 50 percent of the petroleum retail market, selling approximately 80 billion gallons of motor fuel each year. These member companies operate throughout the United States and Canada.
Regular membership in SIGMA is available to companies involved in motor fuel retailing or wholesaling that are not owned by a refiner. In addition, Associate membership is available to fuel supplier companies and to companies that offer financial services, fuel transport services, and fleet card services. SIGMA member companies have long been recognized, both within and outside the industry, as the most aggressive, innovative, and price competitive segment of petroleum marketers. For additional information, please visit www.sigma.org.
Matrix’s Healthcare Group Announces the Successful Sale of Next Generation Children’s Centers
RICHMOND, VA – February 23, 2016 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of Next Generation Children’s Centers (“NGCC” or the “Company”) to Cadence Education, Inc. (“Cadence”), a Scottsdale, AZ based portfolio company of Audax Group, Inc. Matrix served as exclusive financial advisor to NGCC. The transaction was led by David Keys, Head of Matrix’s Healthcare Group, along with David Endom and Brady Hill.
Next Generation Children’s Centers is a leading provider of early education and childcare services in the Commonwealth of Massachusetts. Founded by Donna Kelleher in 1993, the Company has grown from a single location to ten locations across the Boston metropolitan area and has an enrollment of more than 2,000 students. The Company has established a premier reputation for the quality of its educational programs and the depth of care it provides to students and families.
“It was an absolute pleasure to work with Donna and her team,” said Keys. “Donna’s focus on finding the right company to provide continuity to the NGCC educators and the families they serve was of primary importance and Cadence’s focus on maintaining the brand identity of acquired schools was an excellent fit. We are excited to watch the continued growth of Next Generation within the Cadence Education family of schools.”
“Matrix’s professionalism resulted in a positive outcome for all parties,” said Kelleher. “David, David, and Brady were focused on understanding our objectives and providing alternatives, gave sound advice, and did an outstanding job managing the process.”
Cadence Education is one of the ten largest providers of childcare services in the United States with a platform of more than 150 learning centers. The acquisition of NGCC marks Cadence’s entry into the Massachusetts market and will significantly expand Cadence’s presence in the Northeast.
Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo acted as legal advisor to NGCC on the transaction. Cadence was represented by Goulston & Storrs PC.
About Matrix’s Healthcare Group
Matrix’s Healthcare Group was founded to provide differentiated advisory services to lower middle market companies in the sectors of Health, Wellness, and Education. Our professionals have extensive experience as advisors, investors, and operators within these markets and understand the nuances and regulation that influence performance and market positioning. Team members have executed more than 25 advisory transactions with an aggregate deal value in excess of $2.5 billion. Since launching in December 2014, the Healthcare Group has closed four transactions, each of which were in its core sectors.
About Matrix Capital Markets Group, Inc.
Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with additional offices in Baltimore, MD and Chicago, IL. Since 1988, Matrix has provided merger & acquisition and financial advisory services for privately-held, private-equity owned and publicly traded companies, including company sales, recapitalizations, asset divestitures, corporate recovery, management buyouts, capital raises of debt & equity, corporate valuations and fairness opinions. Matrix has served clients in a wide range of industries, including building products, business services, consumer products, downstream energy & retail, healthcare, education, industrial products, lumber and media & communications. For additional information or to contact our team members, please visit www.matrixcmg.com.
Securities offered by MCMG Capital Advisors, Inc., an affiliate of Matrix Capital Markets Group, Inc., Member FINRA & SIPC
Matrix's Healthcare Group Update
Matrix Capital Markets Group, Inc. established its Healthcare Group in late 2014 and has gained traction throughout 2015 and into 2016 by advising on several engagements in the laboratory, behavioral health, wellness, and education sectors.
Across the Healthcare Group’s assignments in 2015 strategic acquirers and financial sponsor-backed companies were the most aggressive buyers. The desire to complete a specific strategic niche, whether filling in a geography or augmenting a service offering, drove acquisition activity. The team’s dialogue with current and prospective clients indicates that strategic consolidation will likely be a continuing trend in 2016.
Within certain sectors, particularly healthcare data informatics, a desire to find partners to help achieve greater scale is driving activity. These partners are either strategic acquirers with existing relationships or financial sponsors capable of providing capital and expertise. Within sectors such as laboratory services, operating efficiencies in the face of changing reimbursement is a tangible driver. The broad behavioral health sector continues to be active, supported by the tailwinds of expanding coverage and the consolidation of a highly fragmented sector by both strategic buyers as well as sponsor-backed management teams with the ability to act like a strategic.
Matrix provides expert advice for mergers, acquisitions, divestitures, and capital raises (debt and equity). Matrix’s processes are tailored to each client’s situation and have consistently resulted in optimal outcomes, including providing maximum value and delivering a high degree of certainty of closing. Our detailed understanding of strategic buyers is augmented by a database of over 2,000 financial acquirers. When raising capital, our extensive knowledge of debt and equity capital providers results in our clients receiving the best terms available.
David Keys, Managing Director, serves as Head of the Healthcare Group. David Endom, Vice President, brings operating experience from the education sector along with prior healthcare M&A experience. Braden Hill, Senior Analyst, has worked with the team since inception. Collectively, the Group has more than two decades of experience in M&A and has executed transactions that, in aggregate, exceed more than $2.5 billion within the health, wellness, and education sectors. The Healthcare Group has advised companies on strategic alternatives across the following sectors:
Healthcare Services:
- Behavioral Health
- Clinical and Forensic Laboratories
- Home Healthcare and Hospice
- Physician Practices
- Contract Research Organizations
- Clinical, Allied & Lab Staffing
- Specialty & Institutional Pharmacy
Healthcare Information Technology:
- Laboratory Information Systems
- Practice Management Systems
- Revenue Cycle Management
Medical Devices:
- Class I, II, and III Devices
- Contract Manufacturing
- Institutional and Pharmacy Automation
- Medical device preventative maintenance and repair (ISO and multi-vendor)
Contact:
David M. Keys, CFA Managing Director, Head of Healthcare Group
804-591-2042 dkeys@matrixcmg.com
David H. Endom, Vice President
804-591-2035 dendom@matrixcmg.com
Braden R. Hill, Senior Analyst
804-591-2062 bhill@matrixcmg.com
Carlton C. Zesch, Analyst
804-591-2046 czesch@matrixcmg.com
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
Matrix's Media & Communications Group Update
Matrix Capital Markets Group, Inc. established its Media & Communications Group in late 2014. Throughout 2015, Matrix’s Media & Communications team has advised on several transactions in the broadcasting, outdoor advertising and fiber-to-the-premises (FTTP / FTTH) sectors. At the start of 2016, the team looks forward to another successful year advising its clients.
Many strategic buyers in the media and communications industries continue to consolidate certain sectors. In 2016, the consolidators will continue making acquisitions to gain economies of scale. As a result, many middle market operators are electing to sell entirely, or divest non-core divisions or assets. Other companies are raising additional capital to invest in growth opportunities.
Matrix can provide expert advice for mergers, acquisitions, divestitures, as well as capital raises (debt and equity). Matrix’s proactive and broad-based sale process maximizes value, as well as delivers a high degree of certainty of closing. Our detailed understanding of strategic buyers is augmented by a database of over 2,000 financial acquirers. When raising capital, our extensive knowledge of debt and equity capital providers provides our clients with the best terms available.
Michael McHugh, Managing Director, serves as Head of the Media & Communications Group. He has completed over 100 transactions worth over $2 billion within the media and communications industries and has advised companies on strategic alternatives across the following sectors:
Media:
- Broadcasting
- Outdoor/Out-of-Home Advertising
- Digital Media
- Movie Theaters/Entertainment
- Content & Programming Providers
Communications:
- Cable Television
- Telecommunications
- Fiber-to-the-premises (FTTP/FTTH)
- Broadband/Fiber Networks
- Towers/Wireless Back-Haul Systems
Please contact:
Michael S. McHugh, Managing Director, Head of Media & Communications Group
804-591-2041 mmchugh@matrixcmg.com
John Ellison, Associate
804-591-2036 jellison@matrixcmg.com
About Matrix’s Media & Communications Group
Matrix’s Media & Communications Group is a leading provider of transactional advisory services to middle market companies in the media, entertainment, and telecommunications sectors. Team members draw upon long term industry experience to provide merger and acquisition expertise, debt and equity capital raises, corporate restructurings, corporate valuations, and strategic planning engagements. Expertise spans many sectors within this industry including, Media: broadcasting (radio and TV), outdoor (billboards, out-of-home, digital display), digital media, ad tech, print media, movie theaters, entertainment, and content providers, and Communications: cable television, broadband, telecommunications (wireline and wireless), M2M, fiber networks (FTTH, FTTP, long haul and regional), towers and data centers.
About Matrix Capital Markets Group, Inc.
Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with additional offices in Baltimore, MD and Chicago, IL. Since 1988, Matrix has provided merger & acquisition and financial advisory services for privately-held, private-equity owned and publicly traded companies, including sell-side M&A advisory, recapitalizations, asset divestitures, corporate valuations, corporate recovery, buy-side M&A advisory, capital raises of debt & equity, management buyouts, corporate advisory and fairness opinions. Matrix has served clients in a wide range of industries, including building products, business services, consumer products, downstream energy & retail, healthcare, industrial products, lumber and media & communications. For additional information or to contact our team members, please visit www.matrixcmg.com.
Securities offered by MCMG Capital Advisors, Inc., an affiliate of Matrix Capital Markets Group, Inc., Member FINRA & SIPC
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.
Matrix Announces the Successful Sale of CMA Supply Co., Inc.
RICHMOND, VA – December 9, 2015 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of CMA Supply Co., Inc. (“CMA Supply” or the “Company”) to Carter-Waters, LLC, a Kansas City, Missouri based portfolio company of Merit Capital Partners and Aiglon Capital Management, LLC. The acquisition forms a seventeen location platform across Indiana, Ohio, Kentucky, Missouri, Kansas, and Illinois. Matrix served as exclusive advisor to CMA Supply and the transaction was led by Andrew Chidester and Braden Hill.
CMA Supply is a regional distributor of concrete and masonry products and accessories to professional contractors in the residential, commercial, and industrial end-markets. The Company was founded by William Updike in June of 1978 in Indianapolis, Indiana and has grown to six distribution facilities and two rebar and fabrication facilities across Indiana, Kentucky, and Ohio. The Company has a premier reputation for service and product selection within the region.
Carter-Waters, LLC provides construction materials and rental equipment throughout the Midwest. The Company was founded in 1922 and was acquired by Merit Capital Partners and Aiglon Capital Management in 2014.
Bill Updike, President of CMA Supply commented, “This was a complex assignment due to the number of entities involved, the decentralized nature of our operations and the diversity of goals for the shareholder base. The Matrix team overcame every obstacle and guided us to a successful transaction for all concerned. I would recommend Matrix to any ownership group considering a transition.”
Faegre Baker Daniels LLP acted as legal advisor to CMA Supply on the transaction. Carter-Waters was represented by Reinhart Boerner Van Deuren s.c.
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.
Matrix Capital Markets Group, Inc.’s Healthcare Team Advises Safe Foods International Holdings, LLC on its Sale to Laboratory Corporation of America® Holdings
RICHMOND, VA – November 6, 2015 - Matrix Capital Markets Group, Inc. (Matrix) announces the successful sale of Safe Foods International Holdings, LLC (SFIH) to Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH). Matrix served as exclusive financial advisor to SFIH. The transaction was led by David Keys, Head of Matrix’s Healthcare Team, and David Endom, who joined Matrix to help launch the Healthcare Team at the beginning of 2015. Brady Hill also assisted on the transaction.
SFIH was formed to create a contract research organization focused on the full spectrum of services required by food, beverage and nutrition companies. SFIH is involved from product development through scaling production, while also providing product integrity testing.
“The Matrix team provided us with first rate representation and advice throughout the process,” said Johannes Burlin, former president of SFIH. “Their knowledge of the industry and process combined with responsiveness and dedication was invaluable.”
LabCorp released the following regarding the transaction:
LabCorp Acquires Safe Foods International Holdings
Transaction Expands Capabilities in Food and Beverage product-development and product-integrity
BURLINGTON, N.C. - Laboratory Corporation of America® Holdings (LabCorp®) (NYSE: LH) today announced the acquisition of Safe Foods International Holdings, LLC (SFIH) and its two operating companies, International Food Network (IFN) and The National Food Laboratory (The NFL). With the addition of IFN and The NFL, LabCorp now offers an expanded range of industry-leading services to the global food, beverage and nutrition industries through Covance’s Nutritional Chemistry and Food Safety business. Terms of the transaction were not disclosed.
“We identified nutritional chemistry and food safety as an exciting growth opportunity for our company immediately after the acquisition,” said David P. King, chairman and chief executive officer of LabCorp. “International Food Network and The National Food Laboratory represent our first major expansion in this important area, and we are delighted that these high-quality companies and their outstanding teams are joining our company. With this acquisition, we extend our capabilities to offer a full range of product-development and product-integrity services to food and beverage manufacturers and retailers, industry organizations, and academic institutions.”
“This was the right time, and the right partner, for our business to become part of a larger organization,” said Johannes Burlin, president of SFIH. “We are excited to join Covance, and we look forward to the opportunities our combination will create for customers as we expand our global business.”
“These two companies are recognized leaders in the industry, particularly their product-development solutions,” said Jon Meltzer, LabCorp’s senior vice president for corporate strategy. “We look forward to combining the capabilities of IFN and The NFL with Covance’s industry-leading nutritional analysis, contaminant and microbiology testing services. Supported by our enterprise expertise in logistics, molecular testing, data, analytics and contract research, we will continue to expand our capabilities to provide a truly differentiated offering to this vital industry.”
About LabCorp®
Laboratory Corporation of America® Holdings, an S&P 500 company, is the world’s leading healthcare diagnostics company, providing comprehensive clinical laboratory services through LabCorp Diagnostics, and end-to-end drug development support through Covance Drug Development. LabCorp is a pioneer in commercializing new diagnostic technologies and is improving people’s health by delivering the combination of world-class diagnostics, drug development and knowledge services. With combined revenue pro forma for the acquisition of Covance in excess of $8.5 billion in 2014 and more than 48,000 employees in over 60 countries, LabCorp offers innovative solutions to healthcare stakeholders. LabCorp clients include physicians, patients and consumers, biopharmaceutical companies, government agencies, managed care organizations, hospitals, and clinical labs. To learn more about Covance Drug Development, visit www.covance.com. To learn more about LabCorp and LabCorp Diagnostics, visit www.labcorp.com.
This press release contains forward-looking statements including with respect to estimated 2015 guidance and the impact of various factors on operating results. Each of the forward-looking statements is subject to change based on various important factors, including without limitation, competitive actions in the marketplace, adverse actions of governmental and other third-party payers and the results from the Company’s acquisition of Covance. Actual results could differ materially from those suggested by these forward-looking statements. Further information on potential factors that could affect LabCorp’s operating and financial results is included in the Company’s Form 10-K for the year ended December 31, 2014, and the Company’s Form 10-Q for the quarter ended June 30, 2015, including in each case under the heading risk factors, and in the Company’s other filings with the SEC, as well as in the risk factors included in Covance’s filings with the SEC. The information in this press release should be read in conjunction with a review of the Company’s filings with the SEC including the information in the Company’s Form 10-K for the year ended December 31, 2014, and subsequent Forms 10-Q, under the heading MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS.
Matrix Announces the Successful Sale of CrossAmerica Partners LP's Fuels Transportation, Heating Oil & Tank Wagon Commercial Fuels Businesses
RICHMOND, VA - November 4, 2015 - Matrix Capital Markets Group, Inc. ("Matrix") announces the successful closing on the sale of the fuels transportation, residential heating oil and tank wagon commercial fuels businesses owned by CrossAmerica Partners LP (the "Company" or "CrossAmerica") that were formerly operated by wholly owned subsidiary, Petroleum Marketers, Inc. ("PMI") to multiple buyers. Reliable Tank Line, LLC, a division of Quality Oil Company, LLC, purchased the fuels transportation business. The heating oil and tank wagon commercial fuels business was sold by terminal branch to multiple buyers: Quarles Petroleum, Inc.; Davenport Energy, Inc.; and, Woodfin Heating, Inc.
In May of 2014, Lehigh Gas Partners LP, the predecessor of CrossAmerica, purchased PMI, which at the time operated two primary lines of business: convenience stores and petroleum products distribution. CrossAmerica subsequently decided to divest the fuels transportation, residential heating oil and tank wagon commercial fuels businesses, which consisted of customers, bulk storage plants, operational facilities and fleet assets that served customers throughout the Commonwealth of Virginia. PMI was incorporated in 1949, and has been supplying and delivering a variety of petroleum products to commercial, dealer, governmental and residential customers for over 60 years.
Matrix provided merger and acquisition advisory services to CrossAmerica, on the above divestitures, which included valuation advisory, marketing of the assets through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Spencer Cavalier, Managing Director and Cedric Fortemps, Managing Director. Andrew LoPresti, Associate, also advised on the transaction.
David Hrinak, Executive Vice President and COO of CrossAmerica said, "Matrix's advice, assistance and professionalism throughout this process has resulted in a positive outcome for all parties. As always, it was a pleasure working with the folks at Matrix."
Messrs. Cavalier and Fortemps commented, "Matrix is very appreciative to continue our advisory relationship with CrossAmerica and its general partner, CST Brands, Inc. We are extremely pleased with the results of this process."
Dennis McCarthy and Marc Albanese of Davison & McCarthy, P.C. served as legal counsel for CrossAmerica.