Matrix Announces the Successful Issuance of Shodair Children’s Hospital’s Series 2020A/B Bonds
RICHMOND, VA / BALTIMORE, MD – November 3, 2020 - Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has served as financial advisor to Montana Children’s Home and Hospital d/b/a Shodair Children’s Hospital (“Shodair”) on the successful issuance of its Series 2020A/B Bonds. Shodair, located in Helena, Montana, provides pediatric psychiatric care and operates a comprehensive genetics program.
Shodair is the only not-for-profit, dedicated pediatric psychiatric provider in Montana with a robust continuum of care and dedicated inpatient psychiatric beds for children ages 3-18. Shodair’s psychiatric services include inpatient care, day treatment, outpatient, and school-based services, as well as a psychiatric residential treatment facility and therapeutic group home. Their service area includes all of Montana, and in 2019 they served patients from 44 of the state’s 56 counties.
Shodair issued $32,735,000 of tax-exempt Series 2020A Bonds on its own credit, as well as $20,000,000 of tax-exempt Series 2020B Bonds backed by the Montana Board of Investments. Both the Series A/B Bonds were issued through the Montana Facility Finance Authority and were publicly-offered, tax-exempt, fixed rate bonds. The bond issuance will finance the construction of a new 131,676 square foot facility designed to provide an environment of healing. The new design will include 82 private rooms, which will allow Shodair additional flexibility in treating more patients.
Matrix provided financial and municipal advisory services to Shodair, including developing and implementing the financing plan. The transaction was managed by Vasanta Pundarika and Amanda Verner Thompson, both Managing Directors and Co-Heads of Matrix’s Healthcare Investment Banking Group.
Ms. Thompson stated, “Matrix feels very privileged to have been chosen to advise Shodair on the development and implementation of this financing plan. This transaction to finance a new building for Shodair will provide Montana’s kids and families with a facility that will greatly improve the access and quality of the care being delivered.”
Ms. Pundarika added, “We are excited about Shodair’s continued growth as an organization with this new project. It is an integral part of healthcare delivery in Montana and the new building will allow them to treat more patients in an environment dedicated to hope, healing, and safety.”
Amy Christensen of Christensen & Prezeau LLP served as legal counsel to Shodair.
Matrix Announces the Successful Sale of Dixie Gas & Oil Corporation
RICHMOND, VA / BALTIMORE, MD – October 26, 2020 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading independent investment bank, announces the successful closing on the sale of the propane, petroleum, and lubricant operations of Dixie Gas & Oil Corporation (“Dixie” or the “Company”) to Quarles Petroleum, Inc. Based in Verona, Virginia, Dixie is one of the region’s largest independent suppliers of retail propane, heating oil, commercial fuels, and lubricant products serving over 10,000 customers in 17 counties throughout Virginia and West Virginia.
The Company was originally founded as Dixie Bottle Gas Company in 1946, by Dennis Earhart and his father, Roy Earhart. Over the next three decades, the Company grew its propane businesses and also expanded its product offerings to include heating oil, gasoline, motor oil, tires, batteries, and other automotive accessories before changing its name to Dixie Gas & Oil Corporation in 1963. The Company entered the convenience store industry in the 1970’s, eventually operating six convenience stores and six Subway restaurants before divesting them to Go-Mart in 2015. Chris Earhart took the reins as President after the passing of his father, Dennis, in 1991 and, along with Danny Alexander, Executive Vice President, has continued to drive the Company’s success and expansion for nearly 30 years. During this time, Dixie made a number of acquisitions and also expanded their service area with the addition of new retail propane offices and bulk plants. The Company currently operates five bulk plants including a rail terminal at their Verona headquarters, as well as four retail offices with appliance showrooms. Dixie is highly regarded for their quality products and services, excellent customer service, and commitment to their local communities.
Chris Earhart commented, “We are pleased that our organization will become part of Quarles Petroleum. As a family business with an equally long history, they share our commitment to our customers, our employees, and the communities that we serve. We also appreciate the advisory expertise of the entire Matrix organization in the successful completion of our project.”
Matrix provided merger and acquisition advisory services to Dixie, 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, Managing Director; Spencer Cavalier, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; John Duni, Vice President, and Ned Farley, Analyst.
Mr. Saunders added, “It’s never an easy decision to sell a third-generation company that’s been in operation for almost 75 years. We’re grateful that Chris and Danny entrusted us to guide them through this process and wish them all the best in their future endeavors.”
Jessica Robinson and Victor Santos of Nelson, McPherson, Summers & Santos, L.C. served as legal counsel to Dixie.
Matrix Announces the Successful Sale of EnergyUnited Propane
RICHMOND, VA / BALTIMORE, MD – September 23, 2020 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised EnergyUnited Electric Membership Corporation (“EMC”) on the sale of its wholly-owned propane distribution subsidiary, EnergyUnited Propane, LLC (“EUP”), to ThompsonGas, LLC (“ThompsonGas”). EUP is one of the largest propane retailers in its region, serving approximately 29,000 residential and commercial customers throughout 104 counties in North Carolina, South Carolina, and Virginia. EMC serves approximately 110,000 electric members in central and western North Carolina, making it the second largest supplier of residential electricity in North Carolina.
In 2000, EMC founded EnergyUnited Propane, LLC through the acquisition of All Star Gas’s North Carolina markets (Durham, Warrenton, Creedmoor, Carthage, Denver, Gastonia, and Hendersonville), as well as the development of greenfield sites in Lexington, Taylorsville, and Madison, North Carolina. EUP acquired the South Carolina markets of All Star Gas (Aiken and Barnwell) in 2001, and Albemarle Propane, based in Camden, NC in 2007. In 2013, EUP purchased Lake Norman Propane. Both EMC and EUP are headquartered in Statesville, North Carolina.
EMC made a strategic decision to focus efforts and redeploy capital into its core, electricity business and explored strategic alternatives to divest its propane distribution business, EUP. Post-closing, ThompsonGas and EMC will maintain a coordinated customer marketing effort within EMC’s electric footprint in central and western North Carolina.
Matrix provided merger and acquisition advisory services to EMC, which included valuation advisory, marketing EUP through a confidential, structured sale process, and negotiation of the sale. The transaction was managed by Spencer Cavalier, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Sean Dooley, Director; and Nathan Wah, Senior Analyst.
Wayne Wilkins, CEO of EMC, stated, “EUP has been a successful business venture for our membership thanks to the support of our members and the leadership of our incredible propane employees. We are very proud of the historic accomplishments that led to this moment and firmly believe that this agreement with ThompsonGas offers tremendous value for EnergyUnited members and EUP customers.”
Mr. Dooley added, “Matrix feels very privileged to have been chosen to advise EMC on the divestment of its propane distribution business unit. We wish Wayne and the rest of the EMC team all the best on the continued growth of their best-in-class electricity business.”
Roy McDonald of Brinkley Walser Stoner, PLLC, as well as Tammera Diehm, Noreen Sedgeman, and Kristy Lieblein of Winthrop & Weinstine, P.A. served as legal counsel for EMC and EUP.
Matrix Announces the Successful Sale of Martin Eagle Oil Company’s Convenience Retail and Wholesale Motor Fuels Businesses
RICHMOND, VA / BALTIMORE, MD – September 15, 2020 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Martin Eagle Oil Company (“Martin Eagle” or the “Company”) on the sale of its convenience retail and wholesale motor fuels businesses to an undisclosed buyer. The convenience retail assets consist of two company-operated stores, one unattended cardlock, 16 commissioned agent-operated stores, and one currently closed facility. The wholesale motor fuels assets consist of 40 dealer-owned supply accounts.
Martin Eagle Oil Company, a leading petroleum marketer and fuels distributor based in Denton, Texas, serves retail and wholesale customers primarily in and around the Dallas-Fort Worth metroplex and north central Texas. The Company sold its municipal/government and commercial accounts and its Southwest Transport Co. affiliate to U.S. Venture, Inc. in April 2020.
Martin Eagle is a second-generation family business that was founded in 1963 by Cecil “Zeke” Martin, a former college and professional football standout, with a single Shamrock-branded store in Denton, Texas. The Company is currently led by Zeke Martin’s sons, Stephen “Steve” Martin, President of Operations, and Gary Martin, President of Real Estate.
Matrix provided merger and acquisition advisory services to Martin Eagle, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale. The transaction was managed by John Underwood, Managing Director; Stephen Lynch, Director; and Kyle Tipping, Senior Analyst.
Steve Martin, President of Operations, Martin Eagle, commented, “After selling the commercial, municipal and transportation businesses back in April, Gary and I reevaluated whether it made sense to continue in the retail business. After much consideration, we decided it was time to move on to other opportunities. It was not an easy decision for us to sell the retail and wholesale businesses our family spent 60 years building. We have had many great relationships with our retail and wholesale customers over the years, and we believe the buyer will be a great fit for our customers going forward. Matrix did an excellent job on getting the sale completed and worked diligently with the Martin Eagle team on both transactions. We really appreciate their meticulous attention to detail and all their hard work.”
Mr. Underwood added, “We are honored to have been chosen by Martin Eagle to sell their retail and wholesale motor fuels businesses, and we know how difficult a decision it was for Steve and Gary to exit the fuels industry. We appreciated the opportunity to advise them on this transaction and wish them all the best.”
Bryon Hammer and Elle Whitaker of Bourland, Wall & Wenzel, P.C. served as legal counsel for Martin Eagle.
Matrix Announces the Successful Sale of Medical Gas Supply, LLC d/b/a Bestway Welding Supply
RICHMOND, VA/BALTIMORE, MD – September 1, 2020 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, is pleased to announce the sale of Medical Gas Supply, LLC d/b/a Bestway Welding Supply (“Bestway” or the “Company”) to American Welding & Gas, Inc. (“AWG”), one of the nation’s largest independently owned producers and distributors of industrial, medical and specialty gases.
Ernest “Cotton” Speed, III, President of Bestway, noted, “The AWG brand is nationally recognized for excellent customer service, loyalty to employees, and above all else operating with integrity. I can’t think of a better partner to help Bestway’s employees usher in this next phase of growth.” Regarding Matrix’s services, Mr. Speed added, “The team at Matrix has been exceptional in every respect. The level of service and support I received was incredible, and they were able to create immense value for my business during the transaction process.”
The transaction was managed by David Shoulders, Managing Director and Head of Consumer & Industrial Investment Banking; William O’Flaherty, Director; John Mosser, Associate; Matt Oldhouser, Senior Analyst; and Duncan Rogers, Analyst. Mr. Shoulders noted, “It’s been a pleasure to work with Cotton on this engagement. His passion for his business and the industry is truly contagious. We’re thrilled to have achieved a successful outcome for him and Bestway.”
Mr. Speed is an industrial, medical and specialty gas industry veteran, having participated in the sale of over a half-dozen operating businesses. After selling his prior venture in late 2014, Mr. Speed acquired Bestway in early 2016 and quickly transformed the business into an established regional player capable of servicing the largest customers in the greater Houston, TX area and surrounding regions. Joined by Vice President of Operations, Merced Cavazos, and Head of Sales, Jake Juker, Mr. Speed has elevated the Company’s profile in the minds of vendors and customers by expanding Bestway’s distribution capabilities, namely its entry into the bulk distribution market. As a result of its product breadth and unmatched commitment to service, Bestway has emerged as the preferred provider of gases for customers in an array of end markets and industries.
Jason Krieger, President and CEO of AWG, added, “We are very pleased to welcome Bestway and their impressive team to AWG. Their focus on service first has provided them great growth in Houston. It also aligns well with our mission of providing productivity solutions for our clients with superior customer service. Together, we have a strong platform for growth in Texas.”
Balch & Bingham LLP served as legal counsel for the Company.
About AWG
AWG, headquartered in Raleigh, NC, operates 78 retail locations and 18 fill plants stretching from Montana to Florida. Founded in 1949, AWG produces and distributes industrial, medical, and specialty gases. www.awggases.com
Matrix Announces the Successful Sale of Wadsworth Oil Company of Clanton, Inc.
RICHMOND, VA / BALTIMORE, MD - August 27, 2020 - Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Wadsworth Oil Company of Clanton, Inc. (“Wadsworth” or the “Company”) on the sale of the Company to Circle K Stores Inc.
Wadsworth was founded in Tuskegee, Alabama, by William (Tamp) T. Wadsworth in the late 1920s as a PAN-AM fuel wholesaler. Jim Wadsworth, Tamp’s son, joined the family business in 1972, and shortly thereafter, purchased a small Amoco distributor in Clanton, AL. Throughout the 1980s and 1990s, Jim led the Company’s expansion from being primarily a wholesale supplier to a convenience retailer after building six additional retail locations. Throughout the 2000s, the Company continued to build and acquire new stores throughout central Alabama that now all operate under “The Store” brand name.
Matrix provided merger and acquisition advisory services to Wadsworth, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the purchase agreement. The transaction was managed by Spencer Cavalier, Co-Head of Matrix's Downstream Energy & Convenience Retail Investment Banking; Andrew LoPresti, Vice President; and Nate Wah, Senior Analyst.
Jim Wadsworth, President of Wadsworth, commented, “I would like to thank Matrix for handling the sale of my business. They gave my company the same attention and quality of service that they would give to a thousand-store chain. They communicated effectively with me and my leadership team and advised us in a timely and open manner. The sale process was a learning experience for us, but Matrix made it a smooth transition. Their expertise is second to none, and I give special thanks to Spencer Cavalier, Andrew LoPresti, and Nate Wah.”
Mr. Cavalier added, “Jim built one of the highest performing niche marketing chains that we have seen in the market. We greatly appreciate the opportunity to advise him and his talented management team, led by Terry Carroll, through this successful sale process.”
Roy Crawford and Herbert H. West of Cabaniss, Johnston, Gardner, Dumas & O'Neal LLP served as legal counsel for Wadsworth.
Matrix Announces the Successful Sale of Midwestern Propane Gas Co.
RICHMOND, VA / BALTIMORE, MD – August 6, 2020 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Midwestern Propane Gas Co. (“Midwestern Propane” or the “Company”) on the sale of its propane distribution business to ThompsonGas, LLC. Midwestern Propane is one of the largest independent propane retailers in its region, serving approximately 5,000 residential and commercial customers throughout Illinois and Missouri.
The Company was established in 1936 by A.J. and Martha Urban, who opened their first retail heating fuel location in Belleville, Illinois. The entrepreneurs originally sold butane throughout the state, which at the time was a new heating and cooking fuel. During the 1930s and 1940s, as the Company grew and fostered positive relationships with its customers, it eventually transitioned from selling butane to propane in the 1950s.
Darrell Urban, grandson of the original founders and third generation owner, took over operations in 1985. Under Darrell’s leadership, Midwestern Propane grew both organically and through a series of acquisitions. In total, Darrell and General Manager Ron Brodwater completed four acquisitions from 1995 to 2005. In 2014, Don Urban, Darrell’s brother and 50% partner, sadly passed away. Darrell continued to grow the Company, until his unfortunate passing in 2019, when Susan his wife became the primary shareholder. Midwestern Propane is now under the leadership of the Company’s President (and former long-time General Manager), Ron Brodwater.
Matrix provided merger and acquisition advisory services to Midwestern Propane, 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, Co-Head of Matrix’s Downstream Energy & Convenience Retail Group; Sean Dooley, Director; and John Mickelinc, Senior Analyst.
Ron Brodwater, President of Midwestern Propane, stated, “Matrix was highly recommended by a friend who sold his propane business using Matrix as his investment banker. Matrix exceeded my expectations. My sincere thanks to Spencer, Sean and John for their thorough 24/7 effort on behalf of the company and Susan Urban.”
Mr. Dooley added, “To advise on the sale of an 80-plus year old company that has been in the family for three generations was truly an honor. It has been a privilege to work with Ron and his team to successfully execute this transaction for the Urban family.”
Matthew Schneider, Derek Moore, and Robert Leible of Husch Blackwell LLP served as legal counsel for Midwestern Propane.
Matrix Announces Promotions and Welcomes New Team Member
RICHMOND, VA / BALTIMORE, MD – January 23, 2020 - Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank is pleased to announce several promotions, as well as the addition of a new team member.
William J. O’Flaherty has been promoted to Director. He has been a member of Matrix’s Consumer & Industrial Products Group since 2011. Over the course of his career at Matrix, Mr. O’Flaherty has advised on over 31 successful sell-side, buy-side and capital markets engagements. He is a graduate of the University of Virginia’s McIntire School of Commerce where he received a B.S. in Commerce with a concentration in finance.
Stephen C. Lynch, CFA, CPA has been promoted to Director. Since joining Matrix’s Downstream Energy & Convenience Retail Group in 2011, he has advised on nearly 50 sell-side, buy-side, and other strategic and valuation advisory engagements. Mr. Lynch received both a B.S. in Finance and a B.S. in Accounting & Information Systems from Virginia Tech. He holds the Chartered Financial Analyst designation, is a member of the CFA Institute and is also a Certified Public Accountant.
Martin C. P. McElroy, Jr., CFA has been promoted to Associate. He is a member of Matrix’s Downstream Energy & Convenience Retail Group and joined the firm in 2017. Since that time he has advised on over ten sell-side, strategic and valuation advisory engagements. Prior to Matrix, he was with Stifel Nicolaus in the Industrials Group. Mr. McElroy received a B.S. in Business Administration from the University of Richmond with a major in Accounting and a concentration in Finance. He holds the Chartered Financial Analyst designation and is a member of the CFA Institute.
Matrix is also pleased to welcome Edward M. Farley V as an Analyst with Matrix’s Downstream Energy & Convenience Retail Group. Prior to joining Matrix he was an analyst with Boxwood Partners, LLC. Mr. Farley received a B.A. in Economics from Hampden-Sydney College, where he graduated summa cum laude. He also received a M.S. in Commerce with a concentration in Finance from the University of Virginia’s McIntire School of Commerce.
Matrix 2019 Year In Review
As we reflect on 2019, we would like to take this opportunity to thank our clients for the privilege of working with them, and we appreciate the trust they placed in us as their advisor.
Our investment banking professionals are passionate about helping our clients achieve the best result possible and are proud to have successfully completed 22 engagements firmwide in 2019. These included 13 sell-side M&A transactions (ten company sales and three corporate carve-outs), one buy-side advisory transaction, and eight valuation assignments for the purposes of exit and/or estate planning. Transaction value totaled nearly $900 million.
This past year also marked the launch of the “Principal Imperative”. This highly specialized program is led by our business consulting group, Matrix Consulting Services, and provides business owners and industry executives in the Downstream Energy & Convenience Retail industry with an opportunity to actively participate in a proven business strategy process. This comprehensive management system ultimately generates growth and drives financial returns, as well as addresses ownership, management and succession challenges. 2020 courses are now open for enrollment.
Last year provided many growth opportunities for our firm as well. We would like to recognize those individuals whose exceptional contributions to Matrix and our clients resulted in promotions, as well as highlight the addition of several new professionals to our growing team. We are delighted at their success and look forward to their continued achievements in the years to come.
Since its founding in 1988, Matrix has advised on more than 450 engagements. This track record of success is reflected in the great work we do for our clients, and the valued relationships we have established and maintained over the years. “The Matrix Principle”, which embodies the firm’s core values of integrity, hard work and independence, is as important today as it was thirty-two years ago, and remains the foundation for each client engagement.
