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convenience store model, CSS was among the first Mobil-branded distributors to encourage independent dealers to rebuild outdated repair bay sites into convenience stores.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.
Matrix Announces Successful Capital Raise for Sanford Behavioral Health
RICHMOND, VA / BALTIMORE, MD – October 11, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Green Castle Recovery Centers, LLC d/b/a Sanford Behavioral Health (“Sanford”) on a successful capital raise. Sanford is a residential and outpatient behavioral health provider located in Western Michigan.
Originally founded in 2015 by David and Rae Green, Sanford is a family business that began in a restored historic home in downtown Grand Rapids, Michigan as a 10-bed residential substance use disorder treatment center for women. The Greens had seen many Michiganders leaving the State in order to receive high-quality substance use disorder treatment and were motivated to try and fulfill this need close to home. Sanford then expanded by adding another home which served as a 20-bed residential treatment center for men.
As Sanford continued to expand, it also added outpatient programs to support its residential treatment as well as an outpatient eating disorder program. This resulted from the Greens’ observation that many of Sanford’s patients had co-occurring conditions in addition to their substance use disorders, including eating disorders, medical issues, and other mental health concerns.
Before the onset of the pandemic, the Greens looked to expand Sanford even further and began planning an 18-acre behavioral health campus in Marne, Michigan. Located 12 minutes from downtown Grand Rapids, the new campus, once fully operational, will house 134 beds including detox, residential substance use disorder treatment, residential eating disorder treatment and residential psychiatric treatment, as well as several outpatient programs. With the addition of the new campus, Sanford created Michigan’s first stand-alone residential eating disorder program.
To support the expansion of the business and development of additional programming, Sanford was seeking additional investors to provide growth capital.
David Green, Chief Executive Officer of Sanford said, “The Matrix Team embraced our big idea of creating a behavioral health campus, despite the many challenges wrought by the pandemic, and constantly shifting capital markets. They got to know us and our vision and expertly crafted a complex financing package. Their dedication and expertise have enabled Sanford Behavioral Health to significantly expand our services to address the mental health needs throughout Michigan and beyond.”
Ultimately, capital was secured in the form of a combination of (i) Convertible Debt through a Regulation D offering, (ii) a Sale-leaseback on the Marne property with a publicly traded Real Estate Investment Trust, and (iii) a revolving loan. Matrix provided capital markets advisory services to Sanford, including marketing the opportunity to a broad base of potential investors as well as a limited group of qualified investors for the Regulation D offering, navigating the process through a quickly evolving and tumultuous capital markets environment, advising on pricing and terms, streamlining the three-pronged solution, coordinating the various transaction counterparties, and ultimately achieving successful execution of the capital raise, positioning Sanford for future growth.
The transaction was managed by Matrix investment bankers Amanda Verner Thompson and Vasanta Pundarika, Co-Heads and Managing Directors, Casey Van de Walle, Director, and Barrett Smith, Analyst, of Matrix’s Healthcare Investment Banking Group.
Ms. Verner Thompson said, “We are happy to have supported Sanford as its financial advisor on these capital transactions. This infusion of additional funds will help Sanford continue to implement its strategic plan to provide residents across the State and beyond with access to the high quality care that is greatly needed.”
Matrix Announces the Successful Sale of Tidewater Convenience, Inc.
RICHMOND, VA / BALTIMORE, MD - September 22, 2022 - Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Tidewater Convenience, Inc., d/b/a Tidewater Convenience, and its affiliates (collectively, “Tidewater” or the “Company”) on the sale of the Company’s 14 company-operated petroleum marketing and convenience retail stores and one company-owned commission marketer location to Global Partners LP (NYSE: GLP). The locations are throughout the Norfolk, Chesapeake, and Virginia Beach areas of Virginia.
Tidewater Convenience Inc. was incorporated in 1992 by Charles “Chuck” and Carol Weaver when they acquired two Texaco stores in Virginia Beach, VA. The Company experienced steady growth through the 1990’s and 2000’s as the business expanded with up to 17 convenience retailing and petroleum marketing locations at one time. Chuck and Carol Weaver have remained hands-on operators throughout their 30+ years of ownership.
Matrix provided merger and acquisition advisory services to Tidewater, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group and Martin McElroy Jr., CFA, Senior Associate.
Chuck Weaver commented, “It has been an honor and a pleasure to serve the people of Hampton Roads by providing motor fuel and other products for the past 30 years. We are very thankful for the many talented people who helped build Tidewater Convenience into what it is today. When Carol and I agreed that it was time to retire, we knew that we could rely on Matrix to find the next steward of our business. We are very satisfied with the result and know that Global Partners will continue our legacy of delivering high-quality service in each of our locations.”
Mr. Fortemps added, “We’ve greatly enjoyed working with and getting to know the Weavers while advising them on their strategic planning decisions at various times over the last decade. We were honored to have been chosen to advise on the sale of the incredible business Chuck and Carol have built after they told us earlier this year that based on our feedback about market conditions combined with the performance of their business, the timing was right for them to sell. We are extremely happy for them as well as all the Tidewater employees that will be joining the Global Partners team.”
Otto Konrad, Cartwright Reilly, Lauren Pennington, and David Allen of Williams Mullen served as legal counsel for Tidewater.
Matrix Announces the Successful Sale of Quarles Petroleum, Incorporated’s Fleet Fueling and Dealer Supply Businesses
RICHMOND, VA / BALTIMORE, MD – July 25, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces the successful closing on the sale of the fleet fueling and dealer supply businesses of Quarles Petroleum, Incorporated (“Quarles” or the “Company”) to GPM Investments, LLC, a subsidiary of ARKO Corp. (Nasdaq:ARKO) (“GPM”). The assets sold to GPM included over 120 Quarles branded cardlocks, over 60 private cardlock sites, the Company’s fleet card assets, and nearly 50 consignment and wholesale dealer accounts.
Quarles was founded in 1940 by Douglas Quarles Sr. and his son, Douglas Quarles Jr. by purchasing The Home Oil Company in Warrenton, Virginia. Over the next 40 years, the Company expanded into new regions in Virginia and acquired a storage terminal in Spotsylvania County, Virginia, providing a connection to the Plantation Pipeline. In the 1980’s, Quarles began opening cardlock fueling locations and convenience stores, and the Company also entered the propane business. In the two decades that followed, the Company opened a total of 31 Q-Stop convenience stores before selling them to 7-Eleven, Inc. in 2010 to focus on the delivered fuels and fleet fueling businesses. Under the leadership of the current management team, Quarles has grown significantly over the last ten years through the continued development of its cardlock network and fleet fueling program, as well as several acquisitions of propane & refined products distribution companies including Whiting Oil Company, Northern Neck Oil Company, Northern Neck Gas, Revere Gas Company, Dixie Gas & Oil, and the propane assets of PAPCO, Inc.
On June 1, 2022, Quarles sold its propane, heating oil, and commercial fuels distribution business to Superior Plus Corp. At the time of the sale, Quarles was one of the largest propane and refined fuels distribution companies in the U.S. and served over 80,000 residential and commercial customers in Virginia, West Virginia, Washington, D.C., Maryland, Pennsylvania, and North Carolina through a network of over 30 bulk plants and one of the largest fleet fueling networks in the country. The closing of this transaction with GPM represents Quarles’ final exit from the petroleum marketing industry.
Matrix provided merger and acquisition advisory services to Quarles, 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; Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; John Duni, CFA, CPA, Vice President; and Michael Tucker, CFA, Associate.
Paul Giambra, CEO of Quarles, commented, “The Matrix team was instrumental in leading the Quarles organization through the process of marketing the business, finding the best value for each line of business as well as guiding us through the complexity of a multiple buyer sale process.“
Mr. Saunders added, “This has been a very complex, bifurcated sale process, which was structured to maximize value and deal terms for the shareholders. We appreciate the opportunity to advise such a great company on their final exit from the industry.”
Larry Parker, Trevor Wind, Mary Katherine McGetrick, David Allen, and Jonathan Bliley of Williams Mullen served as legal counsel for Quarles.
Matrix Advises Penn Tank Lines, Inc. on the Successful Acquisition of Jet Star, Inc.
RICHMOND, VA / BALTIMORE, MD – July 13, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that Penn Tank Lines, Inc. (“Penn Tank Lines” or the “Company”) has acquired Jet Star, Inc. (“Jet Star”), a leading aviation fuels, food grade products, ethanol, and other petroleum products transportation company headquartered in Zionsville, Indiana.
Penn Tank Lines, headquartered in Chester Springs, PA, is a bulk petroleum and flatbed transportation company. The Company has been delivering fuel and providing superior customer service since 1974, when Penn Tank Lines was founded by its current Chairman and CEO, Jack McSherry. Jack’s son, Steve, currently serves as President. The Company has grown over the years through numerous acquisitions and affiliate relationships and currently serves customers throughout the eastern half of the United States.
Founded in 1982 by CEO Darryl Guiducci, Jet Star, Inc. serves airline, airport, military, and other commercial and industrial customers throughout the Southeastern and Midwestern U.S. Over its forty-year history, Jet Star’s strong record of safety and reliable service has earned it many, long-term, trusted relationships with its customers and a reputation for excellence throughout its territories.
Steve McSherry, the President of Penn Tank Lines, commented, “To add the people and assets of a storied company such as Jet Star is a great accomplishment for us. Working with Darryl & Brian Guiducci and the rest of the Jet Star team through the acquisition was a delight. To add the talented administrative, dispatch, maintenance and driving personnel of Jet Star to Penn Tank Lines is a real coup for us. Cedric, John and the Matrix team were instrumental in helping us evaluate, negotiate and ultimately get to the finish line on this deal. Matrix is a trusted partner adding great value to Penn Tank Lines and we can’t thank them enough for their efforts in getting this deal done.”
Matrix provided merger and acquisition advisory services to the Company, which included advisory on valuation and other transaction terms. The transaction was managed by Cedric Fortemps, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group and John Mickelinc, Associate.
Mr. Fortemps added, “Less than fifteen months after having advised Penn Tank Lines on their successful acquisition of Stardust, we were eager to help when Steve reached out about another transaction opportunity for the growing aviation fuels portion of their business. The Jet Star acquisition is really a win for everyone involved as the culture of both organizations includes a deep commitment to their customers and employees. Jet Star’s customers and employees will be able to benefit from Penn Tank Lines’ greater scale and plans to reinvest and grow the business.”
Tami Diehm, Krista Bengston Cook, and Beth Harper of Winthrop & Weinstine served as legal counsel to Penn Tank Lines, Inc.
Matrix Announces the Sale of MXL Industries, Inc.
RICHMOND, VA / BALTIMORE, MD – June 7, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, is pleased to announce the sale of MXL Industries, Inc. (“MXL” or the “Company”), a manufacturer of high-quality optical plastic products, to Plaskolite LLC (“Plaskolite”), a global leader in the manufacturing of engineering thermoplastics.
Headquartered in Lancaster, PA, MXL molds and coats specialty-crafted optical engineering thermoplastic parts for various military, motorsport, life safety, medical, and aviation applications. MXL is a one-stop shop for customers, offering mold design and construction, injection molding, coating, routing and assembly. The Company’s specialty-crafted optical plastic parts are used in mission-critical products including fighter jet helmets, medical-grade light fixtures and life safety equipment.
Matrix provided merger and acquisition advisory services to MXL, 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, Director; Matt Oldhouser, Senior Associate; Sahan Pandey, Analyst; and Matt Tomsuden, Analyst.
Mr. Shoulders noted, “The ownership group of MXL has built a highly differentiated business that has become a leader in the specialty markets it serves. MXL represents the latest niche manufacturing advisory assignment for Matrix. We were pleased to represent them on this successful outcome.”
Regarding Matrix’s services, Jim Eberle, President and CEO of MXL, commented, “My partners and I have been extremely impressed with the Matrix Team’s performance throughout the entire process. The professionalism and work ethic they displayed were exemplary.”
Founded in 1950 in Columbus, Ohio, by Donald G. Dunn and family, Plaskolite is a global leader in the manufacturing of engineering thermoplastics, including Acrylic, Polycarbonate, ABS and PETG Sheet, Lighting Profiles and PMMA Polymers. Plaskolite’s customized products are used in a wide variety of applications, including windows, doors, lighting, signs, point-of-purchase displays, transportation, security and bath products. Plaskolite serves a diverse customer base including distributors, OEMs and retailers.
Brubaker Connaughton Goss & Lucarelli LLC served as legal counsel for MXL. Trout, Ebersole & Groff, LLP provided tax and accounting advisory to the Company.
Matrix Announces the Successful Sale of Haywood Oil Company, Inc.’s (d/b/a Peak Energy) Heating Oil and Commercial Fuels Businesses
RICHMOND, VA / BALTIMORE, MD – June 6, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Haywood Oil Company, Inc. d/b/a Peak Energy (“Peak” or the “Company”) on the sale of its heating oil and commercial fuels businesses to Colonial Oil Industries, Inc. The Company is headquartered in Waynesville, NC and distributes heating oil and commercial fuels throughout western North Carolina.
Incorporated in 1952, Haywood Oil Company has grown from a local home heating oil delivery company into a leading petroleum marketer, fuels distributor and foodservice business. In 1973, David Blevins left Exxon to become President of Haywood Oil Company. The Company grew through multiple acquisitions that brought additional convenience stores, bulk plants, and fuel brands to the business.
David Blevins’ son, Todd, became President of Haywood Oil Company, Inc. in 1999 and continued the Company’s legacy of growth by making seven acquisitions over the next ten years and added a complementary branded foods division. The Company expanded its heating oil and commercial fuels businesses through its acquisition of Petroleum World in 2015 and serviced more than 3,200 customers by leveraging its fleet of tank wagons and bulk plant facilities. After successfully divesting the Company’s retail and wholesale fuels business in December of 2021, Mr. Blevins decided to make a full exit from petroleum distribution.
Matrix provided merger and acquisition advisory services to Peak, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale. The transaction was managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Andrew LoPresti, CFA, CPA, Vice President; and Michael Tucker, CFA, Associate.
Todd Blevins commented, “It was a difficult decision to sell the business. I am very thankful for the talented people that helped us build the Company over the years. I enjoyed working with Cedric and his team at Matrix. They managed the sale from valuation to closing with an organized and professional process and I am very pleased with the outcome. In addition, Otto Konrad and his legal team at Williams Mullen were excellent to work with and helped make this transaction a success.”
“Both companies are family-based businesses, and we want customers to know that they will continue to receive the same great service they have come to expect,” said Chris Ingram, vice president of Colonial Oil Industries. “They will still work with the same people in our organization as they have in the past, and all the products and services they have received previously will remain unchanged.”
Mr. Fortemps added, “I don’t think we could have found a better steward for these businesses as Colonial’s culture is to take care of its employees and customers, much like Haywood Oil did for many years. We’re pleased that we were able to achieve a very successful outcome for the Blevins family on the sale of their convenience retail and petroleum distribution businesses. We are excited for what lies ahead for them.”
Otto Konrad and Amber Duncan of Williams Mullen served as legal counsel for Peak.
Matrix Announces the Successful Divestment of 50 CEFCO Petroleum Marketing & Convenience Retail Stores
RICHMOND, VA / BALTIMORE, MD – June 2, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Fikes Wholesale, Inc., d/b/a CEFCO Convenience Stores, and its affiliates (“CEFCO” or the “Company”) on the divestment of 50 of the Company’s company-operated petroleum marketing and convenience retail stores located in Texas, Louisiana, Mississippi, Arkansas, and Alabama. BreakTime Corner Market, L.L.C. and its affiliates (“BreakTime”) acquired 48 of the Company’s stores and Refuel Operating Company, LLC d/b/a Refuel acquired two stores in Mississippi.
CEFCO has been serving customers’ convenience needs since its first store opened in 1979. Through organic growth and acquisitions, the Company has expanded to over 250 locations across six states (Texas, Louisiana, Arkansas, Alabama, Mississippi, and Florida). The divestment of these 50 locations enables CEFCO to enhance its capital allocation and focus investment in new stores and remodeling of existing convenience stores.
In addition to the more than 200 petroleum marketing and convenience retail locations that the Company will continue to operate, Fikes Wholesale, Inc. owns and operates a wholesale fuels business (Fikes Fuels), a fuels transportation business (Group Petroleum Services, Inc.), an ATM solutions provider (CORD Financial Services), and an ATM processor (Digital Network Solutions).
Matrix provided merger and acquisition advisory services to CEFCO, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; John Underwood, Managing Director; Martin McElroy Jr., CFA, Senior Associate; and James Mickelinc, CPA, Senior Analyst.
Mr. Raymond Smith, President, Fikes Wholesale, Inc., commented, “We appreciate Matrix’s thorough and professional representation throughout this transaction. With plans to open twenty new stores this year, CEFCO will continue to build, open and operate stores that fit its vision of being a first-tier convenience-driven retailer with engaged employees who sell great food and provide great service in an exceptionally clean environment.”
Mr. Cavalier added, “Fikes is one of the best managed and disciplined convenience retailers in the U.S. We are honored to have worked with their executive management team to divest these stores in order for them to redeploy capital to continue growth in their target markets and preferred store prototypes.”
Matrix Announces the Successful Sale of Quarles Petroleum, Inc.’s Propane and Refined Fuels Distribution Business
RICHMOND, VA / BALTIMORE, MD – June 1, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces the successful closing on the sale of the propane and refined products distribution business of Quarles Petroleum, Inc. (“Quarles” or the “Company”) to Superior Plus Energy Services, Inc., a subsidiary of Superior Plus Corp. (“Superior”). The assets included in the sale to Superior comprise the Company’s delivered fuels business that supplies propane and refined fuels to residential and commercial customers in Virginia and West Virginia from its large network of bulk plants and customer service centers.
Quarles was founded in 1940 by Douglas Quarles Sr. and his son, Douglas Quarles Jr. by purchasing The Home Oil Company in Warrenton, Virginia. Over the next 40 years, the Company expanded into new regions in Virginia and acquired a storage terminal in Spotsylvania County, Virginia, providing a connection to the Plantation Pipeline. In the 1980’s, Quarles began opening cardlock fueling locations and convenience stores, and the Company also entered the propane business. In the two decades that followed, the Company opened a total of 31 Q-Stop convenience stores before selling them to 7-Eleven, Inc. in 2010 to focus on the delivered fuels and fleet fueling businesses. Under the leadership of the current management team, Quarles has grown significantly over the last ten years through the continued development of its cardlock network and fleet fueling program, as well as several acquisitions of propane & refined products distribution companies including Whiting Oil Company, Northern Neck Oil Company, Northern Neck Gas, Revere Gas Company, the propane assets of PAPCO, Inc., and Dixie Gas & Oil.
Today, Quarles is one of the largest propane and refined fuels distribution companies in the U.S. and serves over 80,000 residential and commercial customers in Virginia, West Virginia, Washington, D.C., Maryland, Pennsylvania, and North Carolina through a network of over 30 bulk plants, over 120 Quarles branded cardlocks, and over 60 private cardlock sites. The sale to Superior did not include the Company’s fleet fueling and cardlock assets, the wholesale dealer business, or the lubricants business.
Matrix provided merger and acquisition advisory services to Quarles, 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; Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; John Duni, CFA, CPA, Vice President; and Michael Tucker, CFA, Associate.
“The Matrix team was instrumental in identifying Superior as a good match to acquire our delivered fuels business. They guided us through the entire process from marketing our business to buyers to managing through the closing process,” said Paul Giambra, CEO of Quarles Petroleum. “We’re pleased to transition our delivered fuels business to a company that shares our values of providing a high level of customer service and values the contributions of our associates to the success of our business.”
Mr. Saunders added, “We’ve had a long relationship with Quarles for many years and have watched them build an exceptional business. We’re honored to have had the opportunity to advise the Company and its shareholders on this transaction, and we’re especially grateful for the tireless efforts of the management team to execute on a complex carve-out of these assets.”
Larry Parker, Trevor Wind, Mary Katherine McGetrick, David Allen, and Jonathan Bliley of Williams Mullen served as legal counsel for Quarles.
Matrix Announces Capital Raise for Saratoga Casino Holdings
RICHMOND, VA / BALTIMORE, MD – May 18, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it served as lead advisor on Saratoga Casino Holdings’ (“SCH” or the “Company”) financing and acquisition of Magnolia Bluffs Casino Hotel in Natchez, Mississippi (acquisition subject to regulatory approvals and other customary closing conditions).
SCH owns and operates Saratoga Casino Hotel, in Saratoga Springs, NY featuring more than 1,300 slot machines, electronic table games, a live-entertainment venue, a variety of dining options and bars, live harness racing, and simulcast wagering. The Company also owns and operates Saratoga Casino Black Hawk, located in the historic town of Black Hawk, CO featuring over 380 slot machines, six table games, a full-service restaurant, bar, and a variety of guest services. SCH is also a partner with Delaware North Companies in the operation of Gideon Putnam Resort and Roosevelt Baths in Saratoga Springs.
“We are proud to add Magnolia Bluffs Casino Hotel to our portfolio of gaming assets and further diversify our business,” said Sam Gerrity, Chief Executive Officer of SCH. “We are committed to operating first class gaming facilities, and we do that by creating lasting relationships with our guests, team members and the communities that we serve. We look forward to welcoming Magnolia Bluffs guests and team to the Saratoga family. As we continue to expand our presence, we were fortunate to work with Matrix to structure and intermediate this important financing. Their experience, expertise, and objective approach were critical to securing capital on terms that were very attractive to the Company.”
Located on the Mississippi River, Magnolia Bluffs Casino Hotel opened in 2012 and features over 450 slot machines, 14 table games, a restaurant and bar, a sportsbook, and a 141-room hotel located off-site in the heart of the Natchez, MS.
Matrix provided buy-side and capital advisory services to SCH, 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.
Alex Tucker, COO and Treasurer of SCH 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 Saratoga placed in us to advise them on the capital raise. SCH is a best-in-class regional gaming operator and the acquisition of Magnolia Bluffs represents a transformational acquisition for the Company as it further scales and diversifies. Matrix is privileged to work with the SCH Team.”
Matrix Announces the Successful Sale of Melvin L. Davis Oil Company, Inc. d/b/a Davis Travel Centers
RICHMOND, VA / BALTIMORE, MD – April 12, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Melvin L. Davis Oil Company, Inc. d/b/a Davis Travel Centers (“Davis” or the “Company”) on the sale of its highway travel centers, convenience retail stores, and quick-service restaurants to an affiliate of Petroleum Marketing Group, Inc. (“PMG”). As part of the transaction, Davis and PMG have entered into a transition services agreement.
The Company’s two high-volume, full-service travel centers are located along I-95 and I-85 in South Central Virginia and are part of the AMBEST network of independent truck stops. In addition to its travel centers, Davis also operates two large-format convenience stores under the Company’s Davis Express store brand and numerous branded quick-service restaurants, which include Wendy’s, Popeyes, Little Caesars, Subway, Starbucks, and Dunkin’ Donuts. The travel centers and convenience stores offer Exxon or Mobil branded fuels and the two travel centers also sell unbranded diesel fuels at their high-speed diesel islands.
The Company was founded in 1956 in Sussex, Virginia when Irvin Davis, Sr. and his son, Melvin Davis, Sr. began operating a single restaurant and gasoline filling station in Stony Creek, Virginia. During the 1980’s, Davis expanded into the convenience retail business, eventually operating up to 14 traditional convenience stores. Now under the leadership of Melvin (“Mel”) Davis Jr. and J. Rex Davis, who represent the third generation of the Davis family, the Company has operated in the travel center, convenience retail, restaurant, and fuels businesses for over 65 years.
Matrix provided merger and acquisition advisory services to Davis, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group, Stephen Lynch, CFA, CPA, Director, John Mickelinc, CFA, Associate, and Alex Harper, Analyst.
Rex Davis 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. Fortemps added, “We very much appreciate the trust that Mel and Rex placed in us to advise them on the sale of the incredible business they’ve worked so hard to build. These facilities and operations are best-in-class, which is how they have developed such a large and loyal commercial driver and passenger vehicle customer base from travelers along the I-95 and I-85 corridors in southern Virginia.”
Stephen Burke, and Beth Hungate-Noland, from Williams Mullen served as legal counsel for Melvin L. Davis Oil Company, Inc.
Matrix Announces the Successful Sale of Select Retail Assets of Global Partners, LP to an Affiliate of Petroleum Marketing Group, Inc.
RICHMOND, VA / BALTIMORE, MD – April 4, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Global Partners LP (NYSE:GLP) (“Global” or the “Company”) on the sale of select fuel and convenience retail outlets (the “Stores”) to an affiliate of Petroleum Marketing Group, Inc. (“PMG”). The Stores are all located in Connecticut.
The terms of the transaction and sale of the seven select sites were made pursuant to a Federal Trade Commission (“FTC”) consent order in connection with Global’s acquisition of Consumers Petroleum of Connecticut, Inc. (“Consumers”). Under the terms of the proposed consent order, Global and Consumers/Richard Wiehl were required to divest certain sites associated with the Global and Consumers transaction.
Matrix provided merger and acquisition advisory services to Global, which included valuation advisory, marketing the Stores through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Spencer Cavalier, CFA, ASA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group and Stephen Lynch, CFA, CPA, Director.
Mark Cosenza, Senior Vice President of Global, commented, “We appreciate the work and professionalism of Matrix in helping to market and complete the sale of these seven sites as required by the FTC, allowing us to complete the purchase of 26 sites in Connecticut. We are confident the assets will be well managed by PMG.”
Mr. Cavalier remarked, “We are very pleased to have had the opportunity to advise Global and grateful for the trust they placed in us to help settle the FTC issue. Although Global’s involvement with these sites has come to an end, we fully believe these facilities will be in good hands under PMG’s stewardship.”
Hill Wellford and David Smith of Vinson & Elkins LLP served as legal counsel for Global Partners LP.
Matrix Announces the Successful Sale of the Motor Fuels & Convenience Retail Business of Miller Oil Company, Inc.
RICHMOND, VA / BALTIMORE, MD – February 2, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Miller Oil Company, Inc., d/b/a Millers Energy, and its affiliates (“Miller” or the “Company”) on the sale of the Company’s 21 company-operated petroleum marketing and convenience retail stores, two company-owned dealer-operated stores, and over 70 wholesale dealer accounts located in Virginia, North Carolina, and Florida. Global Partners LP (NYSE: GLP) acquired all of the Company’s stores and wholesale dealer accounts located in Virginia and North Carolina. Sunshine Gasoline Distributors, Inc. acquired all of the Company’s wholesale dealer accounts in Florida.
Miller was founded in 1977 by the late Augustus “Gus” Miller when he purchased Exxon Company USA’s home heating oil business in Norfolk, VA. Throughout the 1980’s, the Company experienced significant growth as the business expanded into convenience retailing and petroleum marketing. In the 2000’s, the Company expanded its fuels distribution business into southern Florida with the acquisition of a dealer portfolio. Today, Jeffrey “Jeff” Miller, President of Miller, manages the Company, as he has done for the last 25 years.
In addition to the petroleum marketing, fuels distribution and convenience retail business sold, Miller Oil Company owns and operates a heating oil distribution and HVAC service business with operations in Virginia, from Virginia Beach to Manassas, which the Company will continue to own and grow.
Matrix provided merger and acquisition advisory services to Miller, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Martin McElroy Jr., CFA, Senior Associate; and Michael Tucker, CFA, Senior Analyst.
Mr. Jeffrey Miller commented, “After 40 years in a great industry that gave me and my family so much, we decided to focus on other areas of our business. We engaged Matrix to advise us on this emotional process, and we couldn’t be happier with the result. We feel Global is a good fit culturally and feel confident our brand and employees will be well taken care of.”
Mr. Fortemps said, “Jeff should be extremely proud of the incredible business his family has built and their long history of serving and giving back to the communities where they operate. Our relationship with Jeff and Gus goes back many years, which makes it especially gratifying to have been able to advise on this successful transaction.”
“The addition of Miller’s significantly expands our retail presence in the mid-Atlantic region and complements our portfolio of over 80 controlled sites and dealer network. Acquiring these high-quality locations enables us to further capitalize on our scale, supply relationships, and our integrated model to enhance product margin along each step of the value chain,” said Global Partners LP President and CEO Eric Slifka. “Like Global, Miller’s is a family-founded business with shared values around community and a commitment to customer experience. This purchase demonstrates our appetite to grow our book of business.”
Tom Frantz, Otto Konrad and Meagan Kalantar of Williams Mullen served as legal counsel for Miller.
Matrix 2021 Year In Review
Friends,
We sincerely hope that you and your families continue to be healthy and safe. We want to start by thanking all of our clients who made 2021 the most successful year in the history of Matrix. We greatly appreciate that they entrusted us to advise them on their M&A transactions, capital raising needs and valuation mandates. 2021 was certainly an interesting year. As a nation, we dealt with the challenges of COVID-19 on a personal level at home with family and friends, as well as professionally with our businesses. At Matrix, like many of you, we have certainly felt the effects of both. The combination of fear of potential tax hikes, rapid consolidation in many industries, low interest rates and robust capital availability, drove M&A activity to record levels. We are extremely proud of the way everyone at Matrix has dealt with the on-going adversity and worked hard to meet the challenges we faced throughout the year. Our entire team continues to live up to The Matrix Principle in every respect. We are also incredibly thankful for the many valued relationships we have with our clients and sincerely appreciate the confidence they placed in us as their advisor.
In 2021, we had the privilege of working with many exceptional clients and are grateful to have advised on 29 successful transactions. These included company sales, corporate carve-outs, buy-side assignments and capital raises. In addition, we also advised on 15 valuation engagements for the purposes of estate, strategic and/or exit planning.
In February, we moved into our new corporate offices at Gateway Plaza in Richmond and added significant space to accommodate current and future growth.
In June, we made the decision to drive additional growth for the firm with the launch of our Capital Advisory Investment Banking Group. Industry veteran, John Whalen joined Matrix as Head of the group, along with Ryan Weir, Vice President and Garrett Novotny, CPA, Analyst. The addition of this new group has brought an even deeper level of experience and focus to all facets of capital advisory and transaction execution, as well as provided our clients with expertise on capital structure efficiency, liquidity, and go-to-market strategy.
In early November, Tod Butler, Senior Advisor, was the proud recipient of the Society of Independent Gasoline Marketers of America (SIGMA) 2021 Distinguished Statesman Award. The award was presented to Mr. Butler as an individual whose deeds and efforts over the last 50 years have made a significant contribution to the welfare of the retail and wholesale fuels marketing industry. He is one of only five individuals to be so honored in the history of the association. In 2001, he joined Matrix as a Vice President in the firm’s Downstream Energy & Convenience Retail Investment Banking Group, where he has focused on business development and client advisory, and he served in that capacity until he became a Senior Advisor in 2019. Since joining Matrix, Mr. Butler has led the firm’s partnership with SIGMA and continued to focus his efforts on the association’s growth in membership and as counsel to its leadership.
In addition to John Whalen, Ryan Weir and Garrett Novotny, CPA with our Capital Advisory Group, we also welcomed several other team members to Matrix, including David Corbett, Director, CFA; James Mickelinc, CPA, Alex Harper and Alex Rakos as Analysts, all in our Downstream Energy & Convenience Retail Investment Banking Group. Sahan Pandey, Analyst, joined our Consumer & Industrial Products Investment Banking Group, Maggie Gerhardt came on board as Director of Compliance, and Jessica Cookmeyer joined as Marketing Coordinator.
We would also like to recognize Sean Dooley, CFA, ASA; Martin McElroy, CFA; Matt Oldhouser, CPA; Kyle Tipping, CFA; John Mickelinc, CFA; Nate Wah, CPA and Mike Tucker, CFA whose contributions to Matrix and our clients resulted in promotions. Our goal has always been to provide our employees with opportunities to develop and grow their careers at Matrix, and we look forward to their continued achievements in the years to come.
As the new year begins, we know that many challenges still linger from the pandemic, including continued uncertainty around taxes, interest rates and the pandemic. However, we remain optimistic about the coming year and hope that it will be a time of renewal and success for all. For over 34 years, throughout all types of market conditions, Matrix has been providing serious advice and sound transaction execution services to our clients. Through our deep knowledge of the industries we serve, ability to execute highly complex customized transactions and negotiating experience, we guide each of our clients through their most difficult decisions and help them derive maximum value for their business. This is why “We’re Known By The Work We Do”.
We wish you all the best in 2022.