Matrix Announces the Successful Sale of H.A. Mapes, Inc.
RICHMOND, VA / BALTIMORE, MD – August 17, 2023 – Matrix Capital Markets Group, Inc. (Matrix), a leading, independent investment bank, has advised H.A. Mapes, Inc. (“H.A. Mapes” or the “Company”) on its sale to Nouria Energy Retail, Inc., a subsidiary of Nouria Energy Corporation (“Nouria”). While H.A. Mapes is known throughout New England as a leading petroleum distributor, the Company in recent years had expanded into convenience retail operations through acquisitions, new-to-industry builds, and major store remodels. Prior to the sale, the Company owned 13 retail locations and sold fuel on a wholesale basis to approximately 80 customers.
H.A. Mapes is a third-generation, family owned and operated business with roots in Springvale, Maine. The Company was founded in 1936 by Harry Allen Mapes as a small heating oil provider servicing customers in Springvale. In 1950, Harry’s son, Harry Allen Mapes, Jr. joined the business and helped the Company expand its reach throughout Southern Maine. For its first 40 years, H.A. Mapes focused on expanding its heating oil business throughout southern Maine. In 1982, Jonathan Mapes formally joined the third-generation family business. Under Jonathan’s guidance, H.A. Mapes transitioned from distributing heating oil to motor fuels and became one of the largest distributors in Maine. In 2018, Jonathan began building out the Company’s convenience retail offerings, and in 2022 he unified each company-operated store with the launch of the Harry’s proprietary brand.
Matrix provided merger and acquisition advisory services to H.A. Mapes, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale. The transaction was managed by Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Andrew LoPresti, CPA, CFA, Vice President; and Kyle Tipping, CFA, Senior Associate.
Jonathan Mapes, President of H.A. Mapes, stated, “In 2019 Matrix identified our deficiencies from a buyer’s perspective via their detailed evaluation. Our team immediately embarked on a new approach to market. We asked Matrix to re-evaluate in 2022 whereupon the decision to ‘go to market’ was made. I would recommend this two-step process to anyone considering the anguishing decision to sell as it can improve value considerably. Transitioning out of the essential petroleum business has been an emotional yet a timely decision that Matrix facilitated professionally.”
Mr. Cavalier added, “We have enjoyed working with Jonathan and his talented team, including Steve McGrath, over the last several years providing valuation, strategic and transaction advisory services. Jonathan’s family and employees built one of the premier petroleum marketing and convenience retailing businesses in New England, and it was an honor to be their advisor.”
Michael Quinlan of Jensen Baird served as legal counsel for H.A. Mapes, Inc.
Matrix Announces the Successful Sale of American Producers Supply Co., Inc.
RICHMOND, VA / BALTIMORE, MD – August 10, 2023 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, is pleased to announce the recapitalization of American Producers Supply Co., Inc. (“American Producers”, “APS” or the “Company”), a leading value-added distributor of industrial and construction supplies, by Merit Capital Partners (“Merit”), a Chicago-based private equity firm with $2.2 billion under management. The transaction closed on July 19th.
APS traces its history back to 1898 in the Ohio Valley, when local entrepreneur Louis Goldish opened a small retail site, then known as American Supply, which sought to provide critical supplies to the surrounding economy. After several years, in an effort to expand its product categories and end markets, American Supply acquired Producers Industrial Supply to form what is now known as APS. From that original single retail site, Marietta, OH-based American Producers has now grown to 13 branch locations spanning Ohio, West Virginia, Kentucky, Pennsylvania, Michigan, and Indiana. The Company represents blue chip industrial and construction vendors, including 3M, Milwaukee, Stanley Black & Decker, Generac, Ridge Tool, and Werner, among numerous others.
Since 1963, the Company has been owned by a single family, with the latest generation of ownership led by Chris Brunton. In 2010, Mr. Brunton brought Joe Wesel on board, a seasoned executive with decades of distribution experience in national organizations, marketing groups and buying groups. Mr. Wesel’s tenure has resulted in significant growth for the Company in nearly every aspect, including several new branch locations, the optimization of distribution and routing, the introduction of e-commerce operations, as well as the addition of hundreds of new customers. Mr. Wesel’s leadership has also seen expansion in APS’s presence within its competitive landscape. In an effort to support additional growth being driven by customer demand, Mr. Brunton and Mr. Wesel have chosen to partner with Merit in a recapitalization of the Company.
Regarding the transaction, Mr. Wesel, who will now assume the title of President and CEO, commented, “We are excited to be partnering with Merit to execute on the Company’s next phase of growth. We have an exceptional group of associates at APS that have helped us earn the trust of many of the top vendor and customer partners in our marketplace. Our transaction with Merit will allow us to continue to serve all of these stakeholders with the outstanding service levels that they’ve come to expect from American Producers.”
Both Mr. Brunton and Mr. Wesel will maintain a meaningful portion of ownership in APS. American Producers has a specific targeted acquisition plan to continue to grow the Company beyond its existing 13 locations that provide delivery throughout the Midwest from Michigan to Alabama.
Matrix provided merger and acquisition advisory services to American Producers, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by William O’Flaherty, Managing Director; David Shoulders, Managing Director and Head of Matrix’s Consumer & Industrial Investment Banking Group; Matt Oldhouser, CPA, Senior Associate; Sahan Pandey, Senior Analyst; and Hampton Massie, Analyst.
Regarding Matrix’s services, Mr. Wesel added, “The Matrix team was exceptional throughout this process. They achieved every objective we set out to accomplish and did so with a level of expertise and professionalism that was remarkable. The entire APS family thanks them for their efforts.”
Mr. O’Flaherty noted, “We were honored to receive this important mandate and are very excited to see the Company continue to thrive with this new partnership. Joe’s stewardship of this century-old business has been nothing short of remarkable. We know the financial and operational support that Merit will provide will enable APS to continue on its present impressive trajectory and provide a number of opportunities for the American Producers organization.”
John Selbach and Clarke Bonney of Whiteford, Taylor & Preston L.L.P. served as legal counsel for American Producers. David Tenney of Tenney & Associates and Jeff Hawkins of Carr, Riggs & Ingram, LLC provided tax and accounting advisory services to the Company.
Matrix Announces the Successful Sale of Vital Plastics, Inc.
RICHMOND, VA / BALTIMORE, MD – July 18, 2023 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, is pleased to announce the sale of Vital Plastics, Inc. (“Vital Plastics” or the “Company”), a high-volume manufacturer and assembler of injection molded plastic products, to Wolverine Capital Partners (“Wolverine Capital”).
Headquartered in Baldwin, WI, Vital Plastics provides injection molding, assembly operations, and tooling solutions to the transportation, industrial, consumer durable, and building product sectors. Operating out of two facilities, totaling over 65,000 combined square feet, the Company manufactures products such as automotive and window clips, industrial components and medical parts, among others, for a blue chip customer base of numerous Fortune 500 entities located throughout the United States. Value-added capabilities, including advanced engineering and design consulting, coupled with unrivaled responsiveness and customer service, has earned Vital Plastics its reputation as a preeminent manufacturer of injection molded products.
Over the past decade, leadership of the organization has transitioned from majority owner Terry Townsend to CEO George Hauser and President & CFO Matthew Fish. Mr. Hauser and Mr. Fish have been instrumental in helping grow and modernize the Company during that period, including driving the implementation of industry-leading automation and reporting systems. Mr. Fish will continue as the lead of day-to-day operations moving forward.
Regarding the transaction, Mr. Fish commented, “We are pleased to partner with the Wolverine Capital team. Of all the groups we interacted with, their team resonated most deeply with us given their straightforward approach and passion for building businesses. We are uniquely aligned in recognizing the attributes that have driven the Company’s success: its loyal employee base and longstanding customer relationships, most of which date back multiple decades. We look forward to our next chapter of growth with Wolverine Capital.”
Matrix provided merger and acquisition advisory services to Vital Plastics, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by William O’Flaherty, Managing Director; David Shoulders, Managing Director and Head of Matrix’s Consumer & Industrial Investment Banking Group; Matt Oldhouser, CPA, Senior Associate; Sahan Pandey, Senior Analyst; and Hampton Massie, Analyst.
Regarding Matrix’s services, Mr. Hauser noted, “My partners and I were impressed by the level of commitment and sophistication that Matrix brought to the transaction. Their detailed knowledge of our specific industry, paired with their experience in transaction advisory, created tremendous value for us. We are extremely grateful for their efforts.”
Mr. O’Flaherty added, “We are thrilled to have found such an excellent partner for Vital Plastics. We congratulate Terry on building such an impressive business and commend George for the tremendous work he’s done as CEO to position the organization for the next phase of growth. We have no doubt that Matt will continue to find success as part of this new partnership given his commitment to providing world-class services to his customers.”
Brian Pitney and David Carroll of Sands Anderson PC served as legal counsel for Vital Plastics. Dykema Gossett PLLC served as legal counsel for Wolverine Capital.
Matrix Announces the Successful Sale of BeWell Network, LLC
RICHMOND, VA / BALTIMORE, MD / NEW YORK, NY – July 17, 2023 – Matrix Capital Markets Group, Inc. (Matrix), a leading, independent investment bank, has advised BeWell Network, LLC (“BeWell” or the “Company”) on its successful sale to H.E.R. Management, LLC.
BeWell is a residential and outpatient behavioral health provider focused on the treatment of substance use disorder. The Company operates in two markets, San Juan Capistrano and Dana Point in Orange County, California and Santa Barbara, California.
BeWell’s service offerings include detoxification, residential care, a partial hospitalization program (PHP), and an intensive outpatient program (IOP) for substance use disorder treatment in both Orange County and Santa Barbara, as well as PHP and IOP for primary mental health care treatment in Santa Barbara. To support patients enrolled in BeWell’s outpatient programs, the Company also operates sober living homes in each of its two markets. The Company is contracted with many of the payors that have a significant presence in Southern California.
BeWell prides itself on the quality of its substance use disorder recovery programs and has a highly trained staff dedicated to patient recovery. The Company is also focused on developing active alumni programs to support patients once they are out of recovery.
BeWell is Joint Commission accredited and LegitScript certified.
Matrix provided M&A advisory services to BeWell, including marketing the transaction, advising on valuation, deal structure, and other transaction terms, and ultimately achieving a successful execution. The transaction was managed by Vasanta Pundarika, Head of Matrix’s Healthcare Investment Banking Group, Casey Van de Walle, Director, and Barrett Smith, Analyst.
Ms. Pundarika said, “We are happy to have worked with the owners of BeWell Network as their financial advisors on this transaction. Under new ownership, we look forward to seeing BeWell implement an enhanced growth strategy, while continuing to provide high quality care to its patients.”
Matrix Announces the Successful Sale of the Lawn & Garden Division of Antilles Power Depot Inc.
RICHMOND, VA / BALTIMORE, MD – June 28, 2023 –Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, is pleased to announce the sale of the Lawn & Garden Division (“Antilles L&G” or the “Company”) of Antilles Power Depot Inc. (“APD”) to Freije Supply Inc. (“Freije Supply”). Antilles L&G is a leading distributor of Stihl, Walker, and other top brands in the lawn maintenance and equipment marketplace.
Headquartered in Carolina, Puerto Rico, with additional locations in the Dominican Republic, St. Thomas, St. Croix, and St. Maarten, APD is a multifaceted, award-winning, distributor and service provider of power generation systems, as well as equipment and tools for lawn care. With over two decades of operating history, the Company has established a diverse commercial and residential customer base that utilizes Antilles L&G’s specialized sales and service capabilities.
Matrix provided merger and acquisition advisory services to Antilles L&G and APD, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by David Shoulders, Managing Director and Head of Matrix’s Consumer & Industrial Investment Banking Group; William O’Flaherty, Managing Director; Matt Oldhouser, Senior Associate; and Sahan Pandey, Senior Analyst.
Mr. Shoulders noted, “We’re thrilled to have assisted the APD team in this important carve-out transaction, allowing them to focus on their core business. We enjoyed working with the Company and its exceptional management team and congratulate all parties on this successful outcome.”
Regarding Matrix’s services, Jason Hebert, President of APD, commented, “Matrix did an exceptional job navigating this highly complex corporate carve-out. I commend their knowledge of these nuanced transactions and am grateful for their assistance.” Addressing the transaction, he added, “We believe this divestiture creates exceptional value for all parties. The Freije Supply team is acquiring a complementary business with exceptional recurring revenue, and I’m confident they’re positioned to grow the business line. This additional capital allows APD to focus on and grow our core business, generator sales and service, while also supporting our growth in yacht and marine services, as well as our expansion into new physical locations throughout the Caribbean.”
Founded in 2014 in Carolina, Puerto Rico, Freije Supply is a wholesale distributor of electrical, plumbing, construction and other miscellaneous household products. Owned and operated by Manolo “Manuel” Freije III, Freije Supply maintains relationships with the most established brands in the markets it serves, including 3M, Delta, EcoSmart, General Electric, Rheem, and Simpson Strong-Tie, among numerous others. Freije Supply distributes to a diverse set of customers throughout the Caribbean. Financing for the transaction was provided by Bluhaus Small Business Fund, L.P., a Small Business Investment Company established to make debt and equity investments in businesses operating predominantly in Puerto Rico.
Bill Lowman and Jason Davis of ShuffieldLowman served as legal counsel for Antilles L&G and APD.
Matrix Advises Apollo Veterinary Medical Hospitals and AVMH Ventures on the Successful Recapitalization and Acquisition of a Portfolio of Pet Supplies Plus Stores
RICHMOND, VA / BALTIMORE, MD – June 12, 2023 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading independent investment bank, announces that it served as lead advisor on Apollo Veterinary Medical Hospitals and AVMH Ventures’ (“Apollo” or the “Company”) recapitalization and acquisition of a multi-state portfolio of Pet Supplies Plus (“PSP”) retail pet stores.
A privately-owned company established in 1999 by Dr. Steven Whatley in Albany, GA, Apollo is a leading veterinary care provider in the Southeast. The Company is comprised of nine full-service veterinary hospital locations throughout Alabama, Georgia, South Carolina, and Florida.
Decades of experience in veterinary medicine and the commercial pet industry led Dr. Whatley to expand the business portfolio to include Pet Supplies Plus franchise retail stores thereby connecting knowledge, passion, and ability to serve customers, while growing profitably within the U.S. pet market. PSP’s franchise platform, growth objectives, and support for owners aligned closely with Apollo’s business model and operating philosophy.
“We are proud to add this most recent portfolio of Pet Supplies Plus stores to our existing portfolio and further diversify and expand our business,” said Dr. Whatley, Chief Executive Officer of Apollo. “We are committed to operating best-in-class veterinary hospitals and Pet Supplies Plus stores, and we do that by forging personal relationships with our clients, patients, team members and the communities that we serve. As we continue to expand our presence, we were fortunate to work with Matrix to structure and intermediate this important transaction. Their experience, functional expertise, and objective approach were critical to securing capital on terms that were very attractive to the Company.”
Pet Supplies Plus, a subsidiary of Franchise Group, Inc. (NASDAQ: FRG), is focused on making it easier to get better products and services for their customers’ pets. With over 640 locations in 41 states and counting, the stores have a streamlined design making it easy to navigate a wide assortment of natural pet foods, goods, and services. Headquartered in Livonia, Michigan, Pet Supplies Plus is ranked No. 20 in Entrepreneur magazine's 43rd Annual Franchise 500® list as of 2022.
In its role as sole intermediary, Matrix provided capital advisory services to Apollo including financial modeling and sensitivity analysis, capital structure assessment, negotiation with counterparties, and placement of both debt and equity capital. The assignment was managed by John Whalen, Head of Matrix’s Capital Advisory Investment Banking Group; Ryan Weir, Director and Garrett Novotny, CFA, CPA, Senior Analyst.
Mr. Weir added, “We very much appreciate the trust that Apollo placed in us to advise them on the capital raise and acquisition. Apollo is a great operator and the addition of this portfolio of stores represents a transformational acquisition for the Company as it further scales and diversifies. Matrix was privileged to work with the Apollo Team.”
Matrix Announces the Successful Sale of WTG Fuels Holdings, LLC’s Retail Motor Fuels, Convenience Retail, and Fleet Fueling Businesses
RICHMOND, VA/BALTIMORE, MD – June 7, 2023 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, today announced the successful closing on the sale of the retail motor fuels, convenience retail, and fleet fueling businesses of WTG Fuels Holdings, LLC (“WTG Fuels” or the “Company”) to subsidiaries of GPM Investments, LLC, a subsidiary of ARKO Corp. (Nasdaq: ARKO) (“GPM”). The assets sold to GPM included 24 Uncle’s branded convenience stores, 68 Gascard branded cardlock sites, 43 private cardlock sites, the Company’s Gascard fleet card assets, and 9 consignment and wholesale dealer accounts.
WTG Fuels, based in Midland, Texas, is a large, diversified fuels distributor and convenience retailer with operations across west Texas and southeast New Mexico. Prior to the close of the transaction, the Company’s assets included a chain of high-volume convenience stores operating under its proprietary Uncle’s brand, a large fleet fueling business operating under its proprietary Gascard brand, and a delivered fuels business, serving residential and commercial customers, that ranks among the largest propane distributors in the Southwest. WTG Fuels’ delivered fuels business, which provides propane, refined products, and lubricants to nearly 19,000 residential and commercial customers through a network of over 70 bulk plants and warehouses, is not included in the sale to GPM and will continue to be operated by WTG Fuels post-closing.
WTG Fuels is a subsidiary of West Texas Gas (“WTG”), a leading provider of natural gas gathering, processing, transmission, and distribution services throughout Texas and Oklahoma.
Matrix provided merger and acquisition advisory services to WTG, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Vance Saunders, CPA, Managing Director; Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; David Corbett, CFA, Director; John Duni, CFA, CPA, Vice President; and Michael Tucker, CFA, Associate.
John Steen, CEO of West Texas Gas, commented, “Matrix proved to be an indispensable partner and advisor to WTG on the divestiture of these assets. We appreciate all the efforts of the Matrix team over the course of this transaction.”
Mr. Saunders added, “Our relationship with WTG first began back in late 2021 as we helped the Company evaluate strategic alternatives for the WTG Fuels businesses. After reviewing several options, the decision was made to divest WTG Fuels’ retail motor fuels, convenience retail, and fleet fueling businesses through a carve-out process to maximize the value of the Company’s assets. We are grateful to WTG for entrusting us with this complex mandate.”
Larry Parker, Trevor Wind, Mary Katherine McGetrick, David Allen, Nico Balbontin, and Alston Underwood of Williams Mullen served as legal counsel for WTG Fuels.
Matrix Advises TBC Corporation on the Sale of NTB and Tire Kingdom Service Centers
RICHMOND, VA / BALTIMORE, MD – June 1, 2023 – Matrix Capital Markets Group, Inc. (Matrix), a leading, independent investment bank, has advised TBC Corporation (“TBC” or the “Company”) on the sale of TBC’s company operated retail businesses to Mavis Tire Express Services Corp. (“Mavis”). The sale includes TBC’s retail network of 595 tire and automotive service centers that utilize the NTB Tire & Service Centers (“NTB”) and Tire Kingdom Service Centers (“Tire Kingdom”) brands.
TBC, a joint venture between Sumitomo Corporation of Americas and Michelin North America Inc., is based in Palm Beach Gardens, Florida and is one of North America’s largest marketers of automotive replacement tires. The Company executes a multi-channel marketing strategy that includes automotive retail, wholesale and distribution, and franchise operations. As part of the transaction, Mavis and TBC have entered into a distribution agreement, through which TBC will provide tire distribution and wholesale services for Mavis retail locations.
While both the NTB and Tire Kingdom brands have long, storied histories, the formation of TBC’s retail platform occurred during the early 2000s when the Company acquired both brands through separate acquisitions. Over the next two decades, TBC continued growing each brand and ultimately operated 392 NTB and 203 Tire Kingdom branded locations across a 17-state marketing territory prior to the sale to Mavis. Together, the NTB and Tire Kingdom brands represent the fourth largest independent tire dealership in the United States according to Modern Tire Dealer’s 2022 MTD 100 rankings.
Matrix provided merger and acquisition advisory services to TBC, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was led by Stephen Lynch, CFA, CPA, Managing Director and William O’Flaherty, Director. David Shoulders, Head of Matrix’s Consumer & Industrial Investment Banking Group; Kyle Tipping, CFA, Senior Associate; Matt Oldhouser, CPA, Senior Associate and Alexander Rakos, Senior Analyst, also advised on the transaction.
Brian Maciak, Executive Vice President & General Counsel of TBC Corporation, recognized, “This transaction was complex and lengthy in duration, yet the efforts, professionalism, and attention to detail from the entire Matrix team have made it as seamless as possible to finalize the agreement and partnership between TBC and Mavis.”
Mr. Lynch added, “We are honored to have been chosen by TBC to not only market the NTB and Tire Kingdom brands, which are both incredibly well-known and respected within the automotive industry, but also to help the Company further develop this strategic partnership. The success of this transaction is a great reflection of the world-class organization that TBC and its shareholders have built, and we are very excited to watch TBC and Mavis grow and strengthen their partnership.”
Mr. O’Flaherty noted, “Matrix is thrilled to have achieved such an excellent outcome for our client, creating value in both the near and long-term for the Company. We were uniquely positioned to drive value in this transaction given our rich history of multi-site retail expertise paired with our knowledge and experience in the automotive aftermarket value chain. We congratulate TBC, Mavis, and their various stakeholders on this successful outcome.”
Bradley Edmister and Aafke Pronk of Hogan Lovells US LLP served as legal counsel for TBC.
Matrix Announces the Sale of Boyett Petroleum’s Convenience Retail Business and Acquisition of United Pacific’s Wholesale Fuels Business
RICHMOND, VA / BALTIMORE, MD – May 11, 2023 – Matrix Capital Markets Group, Inc. (Matrix), a leading, independent investment bank, has advised Modesto, CA-based Boyett Petroleum (“Boyett” or the “Company”) on the sale of its ten company-operated petroleum marketing and convenience retail stores to Apro, LLC d/b/a United Pacific. United Pacific will lease nine of the stores it acquired from Boyett and related-party landlords under long-term lease agreements. In a separate transaction, Boyett has acquired United Pacific’s wholesale fuels distribution business, which consists of approximately 200 fuel supply accounts.
Stan and Carol Boyett founded Boyett Petroleum in 1940 as an operator of gas stations in and around Modesto, CA. Carol and Stan were joined in the business by their son, Carl, in 1970. Carl dramatically expanded the Company’s wholesale distribution division and added to the Company’s growing stable of fuel brands. In 1993, Carl’s son Dale joined the family business. Under Dale’s leadership, the third-generation family-owned company has become one of the largest independent fuel distributors in the United States, supplying fuel to more than 500 service stations and operating ten Cruisers convenience stores.
Boyett’s ten Cruisers-branded convenience stores are high-performing stores that sell 76 branded fuels. The divestment of these stores allows the Company to focus on its growing wholesale fuels distribution business.
Boyett also acquired United Pacific’s wholesale fuels distribution business, which consists of Shell, Marathon, Phillips 66 and Valero branded, as well as unbranded, dealer accounts across California, Oregon, and Washington. As part of this transaction, Boyett acquired United Pacific’s distribution rights in and to the
Shell brand, which will allow the Company to provide another premium brand offering to its existing and new dealer accounts.
Matrix provided merger and acquisition advisory services to Boyett, which included valuation advisory, marketing the business through a confidential, structured sale process, buy-side advisory, and negotiation of the transactions and lease agreements. The transactions were managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Kyle Tipping, CFA, Senior Associate; and Alexander Rakos, Senior Analyst.
Scott Castle, President of Boyett Petroleum, stated, “It was a pleasure working with the team at Matrix throughout this process. They exceeded our expectations and displayed an extremely impressive depth of knowledge not only of our business but the entire industry. We believe that United Pacific will take the stores to the next level. They have a fantastic retail team and have welcomed our employees with open arms. It was important to us to find a company that valued our team as much as we did, and United Pacific did just that. We’re also very excited to bring United’s wholesale customers and team into the Boyett Family and look forward to growing the network of dealers.”
Mr. Fortemps added, “We greatly enjoyed working with the entire Boyett team on these transformational transactions for them. They accomplished their near-term goal of exiting retail and retaining the convenience retail real estate, and longer-term goal of significantly growing their wholesale business. These transactions really are a win-win for Boyett and United Pacific and all the employees involved.”
Matrix Advises Santmyer Companies, Inc. on the Successful Financing and Acquisition of Cole Distributing, Inc.
RICHMOND, VA / BALTIMORE, MD – April 20, 2023 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it served as lead advisor on Santmyer Companies, Inc.’s (“Santmyer” or the “Company”) financing and acquisition of Cole Distributing, Inc. located in Shelby, Ohio.
A privately-owned and family operated company established in 1952 in Wooster, OH, Santmyer is a leading full-service petroleum marketer in northeast and central Ohio. Santmyer’s primary offerings include diesel, gasoline, propane, lubricants, diesel exhaust fluid, and logistics services.
“We are proud to welcome Cole Distributing to the Santmyer family of companies,” said Zach Santmyer, President & Chief Executive Officer of Santmyer. “The Cole family has built a phenomenal business, and we are excited to build upon their legacy of propane and fuels distribution in north central Ohio. As we continue to expand our presence, we were fortunate to work with Matrix to structure and advise on this important acquisition. Their experience, expertise, and objective approach were critical to securing capital on terms that were attractive to the company in relatively challenging market conditions.”
Located in Shelby, OH, Cole Distributing is a distributor of propane, commercial fuels, and lubricants. The company was founded in 1980 by Rodney and Kathleen Cole and serves thousands of central Ohioans’ energy needs. “For over forty years, the Cole ownership and employees have built a strong, loyal customer base, and we look forward to continuing these relationships,” said Terry Santmyer, Chairman of Santmyer. “We are thoroughly impressed with the quality addition of Cole’s operations, equipment, and facilities to our existing infrastructure,” said Nate Santmyer, General Manager of Santmyer. “The synergies between our teams make it a natural partnership and we look forward to the opportunity for growth,” said Zach.
Matrix provided capital advisory services to Santmyer, which included financial modeling, assessment of optimal financing strategy, enhanced structural flexibility, and negotiation of the financing. The transaction was managed by John Whalen, Head of Matrix’s Capital Advisory Investment Banking Group, Ryan Weir, Director, and Garrett Novotny, Analyst.
Mr. Weir added, “We very much appreciate the trust that Santmyer placed in us to advise them on the capital raise. Santmyer is a great operator and the acquisition of Cole Distributing represents a transformational acquisition for the Company as it further scales and diversifies. Matrix is privileged to work with the Santmyer Team.”
Matrix Announces the Successful Sale of Li’l Thrift Food Marts, Inc.
RICHMOND, VA / BALTIMORE, MD – April 12, 2023 – Matrix Capital Markets Group, Inc. (Matrix), a leading, independent investment bank, has advised Fayetteville, NC-based Li’l Thrift Food Marts, Inc. and its affiliates d/b/a Short Stop (“Li’l Thrift” or the “Company”) on the sale of the Company’s 43 company-operated petroleum marketing and convenience retail stores to an affiliate of Petroleum Marketing Group, Inc.
Li’l Thrift was founded in 1971 by Vance B. Neal with a single store in Burlington, NC. The Company nearly doubled in size in 1985 with the acquisition of E-Z Shop, a 23-store North Carolina convenience retailer and in 2004, added seven Exxon-branded locations to its portfolio, which provided an expanded presence in the Fayetteville market. In 2010, Vance Neal’s son, Chris, became President of the Company, and along with his sister, Mary Morketter, Vice President, have continued to build upon their father’s legacy. They successfully implemented a program to modernize Li’l Thrift’s IT systems, by integrating scanning and fuel equipment software, and have remained truly committed to the Company’s high standards of cleanliness and customer service.
All stores operate under the Short Stop backcourt branding, which is recognized as highly reputable in the Company’s markets of operation. The stores offer a variety of fuel options including 19 locations that market Exxon-branded fuel, five sites that feature the Marathon banner, 18 sites that offer unbranded fuel and one location that does not offer fuel. A related entity owned by Chris Neal, Ace Fueling, LLC, will continue to serve as a common carrier hauler for the Short Stop stores.
Matrix provided merger and acquisition advisory services to Li’l Thrift, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by David Corbett, CFA, Director; Spencer Cavalier, CFA, ASA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; John Mickelinc, CFA, Senior Associate and Alexander Rakos, Senior Analyst.
Chris Neal, President, Li’l Thrift, said, “I would like to thank David, Spencer, John and Alex for all that they have done in helping our family exit the convenience store business that we have been involved in for over 50 years. Matrix was instrumental in shaping the way we went to market, how we evaluated bids and eventually choosing PMG as the successful bidder. My family is extremely grateful to Matrix for guiding us through the whole process. We believe that PMG will continue the same family traditions that have guided us over the years.”
Mr. Corbett added, “Vance, Chris and Mary have worked tirelessly for more than 50 years to build Li’l Thrift and the Short Stop chain into one of the leading convenience retail portfolios in the Carolinas. It was a pleasure and an honor to represent the Neal family in the sale of the business during such a transformative and important time.”
Larry Parker and Rakesh Parikh of Williams Mullen served as legal counsel for Li’l Thrift.
Matrix Announces the Successful Sale of Alpena Oil, Inc.
RICHMOND, VA / BALTIMORE, MD – January 26, 2023 – Matrix Capital Markets Group, Inc. (Matrix), a leading, independent investment bank, has advised Alpena Oil Company, Inc. (“Alpena Oil” or the “Company”) on its sale to Blarney Castle Oil Co. Alpena is a leading, northern Michigan grocery and convenience retailer known for offering the best selection of high quality, fresh products at a fair value to its customers. The Company’s retail chain is comprised of six Louie’s Fresh Market full-service grocery stores and 14 traditional convenience stores and a cardlock.
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.
Matrix provided merger and acquisition advisory services to Alpena Oil, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale. The transaction was managed by Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Andrew LoPresti, CPA, CFA, Vice President; Nathan Wah, CPA, Associate; and Jared de Perio, Analyst.
Mr. Johnston stated, “The Matrix team was extremely professional and competent, and worked tirelessly to generate a result that exceeded our expectations. I would like to thank Spencer, Andrew, and Nate for all of their effort and guidance. Job well done!”
Mr. Cavalier commented, “Jere and Sharon built and operated a very successful retail chain that offered customers high value products in a clean and friendly environment. Their creation of the Louie’s Fresh Market brand showcases how they adapted their retail offerings to meet the needs of consumers across different markets. We thank Jere and Sharon for trusting Matrix to advise them on the sale of their company in which they invested so much time and energy to create, build and grow.”
Tammera Diehm, Noreen Sedgeman, and Beth Harper of Winthrop & Weinstine, P.A. served as legal counsel for Alpena Oil.
Matrix 2022 Year In Review
As we embark on our 35th year, we would like to thank all of our clients who made 2022 such a great year at Matrix. We sincerely appreciate the trust they placed in us to advise on their M&A transactions, capital raising needs, and valuation mandates.
For over 35 years, through all types of market conditions, Matrix has been providing unbiased and sound transaction advisory services to our clients. Through our deep knowledge of the industries we serve, our ability to execute highly complex customized transactions and our negotiating experience, we guide our clients through their most difficult decisions and help them create shareholder value for their business. This is why We’re Known By The Work We Do.
We remain optimistic about the coming year and believe those with a long-term perspective will prosper. We wish you all the best in 2023.
Matrix Announces the Successful Sale of Bond Distributing Company
RICHMOND, VA / BALTIMORE, MD – January 10, 2023 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, is pleased to announce the sale of Bond Distributing Company (“Bond”) to Origlio Beverage (“Origlio”).
Origlio acquired Bond in partnership with “HOBO” (the Honickman, Origlio, and Bergson families), which has ownership interest in Amoskeag Beverages in NH, Burke Distributing Corporation in MA, Kramer Beverage in NJ, Manhattan Beer in NY, and Finley Distributors in AZ. Founded in 1933 by Antonio Origlio in Philadelphia, PA, Origlio is a leading beverage distributor of Molson Coors, Constellation, and various other craft beverages in the Southeast Pennsylvania market.
Headquartered in Baltimore, MD, Bond is a leading distributor of Molson Coors, Boston Beer, Yuengling, and various other craft beverages in Baltimore City, Baltimore County, Carroll County, Cecil County, Harford County and Howard County in the State of Maryland. Bond’s product offerings include a highly curated portfolio of beer, malt beverages, wine, spirits, and non-alcoholic beverages.
Matrix provided sell-side merger and acquisition advisory services to Bond, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by John Whalen, Managing Director and Head of Matrix’s Capital Advisory Investment Banking Group; Ryan Weir, Vice President; and Garrett Novotny, Analyst, CPA.
Regarding Matrix’s advisory services, Randi Settleman, President of Bond, commented, “My family and I have been extremely impressed with the Matrix Team’s performance and competency in leading this important effort. The professionalism, industry knowledge, and work ethic they displayed were exemplary and we couldn’t have effected this successful transaction without them.”
Mr. Whalen added, “Over 75 years and through multiple generations of family ownership, Bond has built a highly successful and well-respected beverage distribution platform. Matrix was privileged to represent the shareholders in this transaction.”
Venable LLP served as legal counsel for Bond.
Matrix Advises Tri Gas & Oil on the Successful Acquisition of Pep-Up, Inc. and Capital Placement
RICHMOND, VA / BALTIMORE, MD – December 14, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading independent investment bank, announces that Tri Gas & Oil Co., Inc. (“Tri Gas & Oil”) and its affiliate Comfort Plus Services, LLC have acquired Pep-Up, Inc. (“Pep-Up”), a leading Delmarva Peninsula based propane and refined fuels distributor and HVAC services company.
Tri Gas & Oil, and its predecessor entities, have been delivering fuel and providing high levels of customer service throughout the Delmarva Peninsula since the late 1950s. In 1946, Lee D. McMahan started the McMahan Poultry Company, and several years later he acquired a used oil truck to deliver fuel to his own poultry houses. Soon thereafter, he started delivering fuel to neighboring poultry farmers who wanted the benefit of oil delivery. Tri Gas & Oil was officially incorporated in 1963, delivering heating oil throughout the Delmarva Peninsula. At the time of incorporation, Tri Gas & Oil primarily offered propane and heating oil delivery to commercial customers. As the business grew, offerings were expanded to include residential customers, and also additional product lines, such as custom oil blends, biodiesel, and a range of other cutting edge and environmentally friendly products. For more than three generations, customers have relied on Tri Gas & Oil as a locally owned, family-run business that specializes in making area homes and businesses more comfortable, and helping customers lower their energy costs. Today, Tri Gas & Oil serves customers throughout Maryland and Delaware, with a core density on Delmarva.
Comfort Plus Services, “Your Trusted Source for HVAC”, has years of experience providing superior installation and repair of heating and air conditioning systems as well as indoor air quality (IAQ) solutions. A Carrier® Factory Authorized Dealer, Comfort Plus Services also employs an extremely well-trained staff that services all heating and cooling equipment brands.
Keith McMahan, Chairman & CEO and Nash McMahan, President, Tri Gas & Oil, commented, “This acquisition is very complementary to our existing business divisions, and we look forward to welcoming both the customers and employees of the seller into the greater Tri Gas family of businesses. We are especially excited for the expansion opportunity that this presents to Comfort Plus Services. We would also like to thank the team at Matrix for their leadership throughout the transaction. Their attention to detail and proficiency led to a mutually beneficial closing for both parties.”
Matrix provided merger and acquisition advisory services to Tri Gas & Oil, which included advisory on valuation, deal structuring, and financing options. The transaction was managed by Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Sean Dooley, CFA, Managing Director; and Nathan Wah, CPA, Associate.
Mr. Dooley commented, “Having recently advised the McMahan family on an acquisition in December 2020, we were extremely honored and excited to embark on this transformational combination of two iconic, Delmarva-based family enterprises, the McMahans (Tri Gas & Oil) and the Peppers (Pep-Up). Matrix has known both families for nearly two decades, and there could not have been a better match in terms of culture and operational fit. We wish the McMahans continued success in the future and extend our best to the Pepper family, as William enjoys the next chapter of his life, and Bryan and Martin as they continue to be a part of the combined enterprise.”
Matrix Announces Capital Raise for Carroll Independent Fuel
RICHMOND, VA / BALTIMORE, MD – November 21, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it served as lead financial advisor on Carroll Independent Fuel’s (“Carroll” or the “Company”) syndicated debt refinancing.
A privately-owned, full-service fuel company established in 1907 in Baltimore, MD, Carroll is a leading petroleum marketing and convenience store operator with several hundred retail locations throughout the Mid-Atlantic. In addition to retail fuel distribution, Carroll’s commercial services include gasoline and diesel sales and delivery, fuel filtering, diesel exhaust fluid supply, unbranded and branded gasoline and station services, commercial motor fuel supply, tank loan services, transportation, and business planning.
John Phelps, President & CEO of Carroll commented, “We were fortunate to work with Matrix to structure and intermediate this important financing. Their experience, expertise, and detailed approach were critical to securing capital with very attractive terms.”
Matrix provided capital advisory services to Carroll, which included financial modeling, assessment of optimal financing strategy, enhanced structural flexibility, and negotiation of the financing. The transaction was managed by John Whalen, Head of Matrix’s Capital Advisory Investment Banking Group, Ryan Weir, Vice President, and Garrett Novotny, Analyst.
Juergen Laue, CAO of Carroll commented, “Throughout the entire process the Matrix team provided excellent guidance and advice. Their determined, yet flexible approach and proven methodology allowed for the best outcome for all parties. Simply put, we could not have achieved this without them.”
Mr. Whalen added, “We very much appreciate the trust that Carroll placed in us to advise them on this financing. Carroll is a best-in-class operator and the success of this refinancing not only reflects the Company’s existing strong credit profile, but also affords greater flexibility to the Company as it further scales and diversifies. It was a privilege to work with the Carroll team.”
Matrix Announces the Successful Sale of Community Service Stations, Inc.
RICHMOND, VA / BALTIMORE, MD – November 10, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Community Service Stations, Inc. (“CSS” or the “Company”) on its sale to CrossAmerica Partners LP (NYSE: CAPL). CSS is a leading New England based wholesale motor fuels distributor, supplying approximately 75 million gallons annually.
Community Service Stations, Inc. was founded in Boston, Massachusetts in 1918 by George C. Riley Sr. and his business partner, Paul Strang. George and Paul operated a single service station that offered auto repairs and retailed motor fuels. During its first few decades, the Company expanded its fuel offerings into home heating oil and kerosene, constructing one of the first bulk heating oil and kerosene distribution depots in the suburbs west of Boston. George C. Riley Sr.’s son, George C. Riley Jr., eventually assumed the role of President, a title he would hold for 66 years, during which he tripled the Company’s fuel volume.
In 1979, Chris Riley, George Riley Sr.’s grandson, joined the Company and currently serves as President. As the industry shifted to more of a convenience store model, CSS was among the first Mobil-branded distributors to encourage independent dealers to rebuild outdated repair bay sites into convenience stores. With Chris Riley at the helm, fuel volume continued to significantly increase, and in 2011 CSS became one of the four exclusive fuel distributors authorized and licensed by ExxonMobil to distribute Mobil (and Exxon) branded motor fuels in New England.
Matrix provided merger and acquisition advisory services to CSS, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale. The transaction was managed by Sean Dooley, CFA, Managing Director; Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Nate Wah, CPA, Associate; and James Mickelinc, CPA, Senior Analyst.
Chris Riley, President of CSS, stated, “It was not an easy decision to sell the company that we had built over the past century. The Matrix team provided professional guidance and advisory expertise throughout the entire process and were truly instrumental in securing a successful outcome. CrossAmerica was a natural fit as a buyer for CSS as they share our long tradition of excellence and strong commitment to their customers and employees.”
Mr. Dooley added, “It is not often that you are entrusted to advise a 100-plus year old company on its exit from the industry. Chris has been a great steward to the industry and evolved CSS into a first-class enterprise; he and his team have a lot to be proud of. We wish Chris all the best in the next chapter of his life and future endeavors.”
Otto Konrad and Lauren Pennington of Williams Mullen served as legal counsel for Community Service Stations, Inc.
Matrix Announces the Successful Sale of Holt Oil Company, Inc.
RICHMOND, VA / BALTIMORE, MD – November 9, 2022 - Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Holt Oil Company, Inc. (“Holt” or the “Company”) on the sale of its 19 petroleum marketing and convenience retail stores and wholesale dealer business to Petroleum Marketing Group, Inc. (“PMG”).
Holt Oil Company is a third-generation, family owned and operated business with roots in Fayetteville, North Carolina. In 1930, William D. Holt founded Holt’s predecessor entity Crystal Oil Co. in downtown Fayetteville. The Company originally operated a few gasoline stations and later moved into the home heating oil business. In 1958, William’s son, Charles, joined the Company and helped secure Holt’s first Gulf distributorship. A few years later, William’s youngest son, Henry, joined the Company and both successfully operated the business as partners for over 40 years, increasing the gasoline station count to 22 sites across four counties in North Carolina. Over time, additional family members, Hannah Holt and Louis Cox, as well as brothers Walter and Bill Holt also joined the Company. Through their vision and leadership Holt continued to expand its company-operated convenience stores and in 1989 opened its first Subway franchise. Their increased operational performance and successful growth has continued since that time.
Matrix provided merger and acquisition advisory services to Holt, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale. The transaction was managed by Sean Dooley, CFA, Managing Director; Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Kyle Tipping, CFA, Associate; and James Mickelinc, CPA, Senior Analyst.
Louis Cox, President of Holt, stated, “It has been a pleasure to be involved in this family business serving the motoring public for all these many years. It has been an honor to work alongside the best group of people I could ask for. We had very specific guidelines in choosing a buyer. Matrix was instrumental in that process. I am confident that we made the right choice with PMG.”
Mr. Dooley added, “We are honored to have been chosen as a trusted advisor to the shareholders of Holt to execute on the sale of their third-generation, family-run business. We are extremely happy for them, as well as all the Holt employees that will be joining the PMG family.”
W. Berry Trice, G. Stephen Diab, Lauren Williams, Michael Murchison, David Martin and Andi Van Trigt of Murchison, Taylor & Gibson, PLLC served as legal counsel for Holt Oil Company, Inc.