Matrix Announces the Successful Sale of Leonard E. Belcher, Inc.’s Retail Assets and Branded and Unbranded Wholesale Businesses
RICHMOND, VA – April 27, 2017 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of all of Leonard E. Belcher, Inc.’s (“L.E. Belcher” or the “Company”) retail assets and its branded and unbranded wholesale business to Petroleum Marketing Group, Inc. (“PMG”) of Woodbridge, Virginia. The Company’s retail assets acquired by PMG consist of thirteen company operated stores, one new to industry store that is scheduled to open in early June and one developmental property. Also included in the transaction was L.E. Belcher’s branded contract dealer accounts and its unbranded wholesale business. The Company’s retail assets, branded and unbranded wholesale contracts are primarily located in Massachusetts, Connecticut and Rhode Island.
L.E. Belcher is a well-established independent multi-branded marketer of petroleum products that is based in Springfield, Massachusetts. L.E. Belcher, Inc. began operations in the late 1920’s in Springfield. Mr. Charles Hough purchased the business from Leonard Belcher in the early 1950’s. The Company was sold to Mr. Hough’s son, Edward Hough, President, in the 1990’s. Under Edward’s leadership and direction, and assisted by David Ryan, Vice President, the Company has continued the tradition of delivering quality products and exceptional customer service as they have grown both their retail and wholesale footprint into a multi-state, multi-branded petroleum distribution enterprise with a reach that has stretched as far south as New Jersey and Pennsylvania. Earlier this year Matrix advised the Company on the sale of the Company’s two pipeline supplied distillate terminals, a distillate storage facility and its commercial fuels business to Sprague Resources LP (NYSE: SRLP).
Mr. Hough commented, “Our experience with Matrix was exceptional. Their professionalism and experience was instrumental in developing a competitive bid process and their expertise in the petroleum distribution and convenience retail space created a broad spectrum of prospects. As a legacy, family owned marketer, it was very important that we partnered with a buyer of integrity and character for our employees, our customers and our supplier partners. Matrix was instrumental in achieving a successful sale on all fronts.”
Matrix provided merger and acquisition advisory services to L.E. Belcher, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, transaction structuring, and negotiation of the transaction. The transaction was co-managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Convenience Retail Group and John Underwood, Director. Andrew LoPresti, Senior Associate, and Carlton Zesch, Analyst, also advised on the transaction.
Mr. Underwood commented, “Matrix has now had the pleasure of working on two separate transactions for L.E. Belcher, the sale of the Company’s terminals and commercial fuels business and now the retail assets and branded and unbranded wholesale contracts. It has been a real pleasure to work with Mr. Hough and Mr. Ryan on the sales and we recognize and appreciate how difficult it has been for Mr. Hough to sell assets that his family has owned for decades.”
James Sheils, David Webber and Timothy Mulhern of Shatz, Schwartz and Fentin, P.C. served as legal counsel for Belcher.
Matrix Announces the Successful Sale of Bradley Petroleum, Inc. and Sav-O-Mat, Inc.
RICHMOND, VA – February 14, 2017 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent middle-market investment bank, announces the successful closing on the sale of Bradley Petroleum, Inc. and Sav-O-Mat, Inc. (collectively the “Company”) to Stinker Stores, Inc. (“Stinker”). Headquartered in Denver, Colorado, the Company’s operating history spans over a century in the petroleum marketing and convenience retailing industry, including owning and operating the first Denver-based gas station in 1912. Stinker is acquiring the Company’s 40 stores in Colorado and one in Wyoming.
The Bradley and Sav-O-Mat stores are well-known in the Colorado market, especially the Denver metropolitan region, as very high-volume fuel sites located in high traffic areas and configured to offer ease of ingress and egress for enhanced convenience and speed of refueling. The Company grew significantly under the leadership of George Calkins (deceased) and his son, Brad, both of whom are well-known as accomplished petroleum marketing and convenience retailers and real estate investors. Brad’s son, Buzz Calkins, has served as President of the Company for the last ten years and continued the Company’s legacy of strong profitability and growth.
Mr. Brad Calkins commented, “This is certainly a bittersweet moment. With my family having been in the petroleum business for four generations and me my entire life, it is certainly hard not to look back without some nostalgia. I am proud to reflect on everything we have been through in this industry, and how rewarding it’s been for me personally and my entire family. In saying that, this represented an ideal time for our family and where we want to go with our future endeavors. Matrix did a wonderful job in advising us with such a complicated transaction and was extremely patient while everything was put into place to make it happen. They couldn’t have been a better partner, and we couldn’t have done it without everyone at Matrix and all of their expertise.”
Matrix provided merger and acquisition advisory services to the Company, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Convenience Retail Group, and Spencer Cavalier, Managing Director. Tod Butler, Vice President of Business Development; Sean Dooley, Vice President; Andrew LoPresti, Associate; and Christian Klawunder, Associate, also advised on the transaction.
Mr. Cavalier commented, “We have been very fortunate to have known and worked with the Calkins family for many years. We have watched them build a very successful, market leading company whose longevity spans the work of several generations. We worked hand-in-hand with the family over the last decade to value the Company on several occasions and to advise on how to best position the Company to monetize the company assets for further diversification and tax-efficient estate planning. We thank the Calkins family for the opportunity to advise them.”
Jim Thomas and Carolyn Bishop of Minor & Brown PC served as legal counsel for the Company.
Matrix Announces Recent Promotions
RICHMOND, VA – February 7, 2017 - Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent middle-market investment bank, is pleased to announce the following recent promotions.
Thomas E. Kelso has been elected by the Board of Directors to serve as President of Matrix. This new role will be in addition to his current responsibilities as Managing Director & Principal and Head of Matrix’s Downstream Energy & Convenience Retail Group.
David W. Shoulders has been promoted to Managing Director and Head of Matrix’s Consumer & Industrial Products Group. He has been with Matrix for over ten years and during that time has worked with Michael Morrison and their team to successfully close well over 30 transactions. Mr. Shoulders has been instrumental in sourcing and executing M&A and capital raising transactions, as well as developing and maintaining Matrix’s relationships with private equity funds. He will continue to manage transactions and focus on new client development.
William J. O’Flaherty is a member of Matrix's Consumer & Industrial Products Group and has been promoted to Vice President. Over the course of his seven year career, Mr. O’Flaherty has advised on over 45 successful sell-side and capital markets engagements across a variety of industries including transportation, packaging, manufacturing, distribution and business services. He received a B.S. in Commerce with a concentration in Finance from the University of Virginia’s McIntire School of Commerce.
Stephen C. Lynch, CFA, CPA has been promoted to Vice President. He has been a member of Matrix’s Downstream Energy & Convenience Retail Group since he joined the firm in 2011. Mr. Lynch has helped advise on over 25 successful engagements since joining Matrix, including sell-side advisory on transactions totaling over $1.3 billion of transaction value. Prior to joining Matrix, Stephen was a member of Deloitte & Touche LLP’s audit practice, where he gained substantial experience performing financial statement audits and internal control attestations across a broad range of companies. He received both a B.S. in Finance and a B.S. in Accounting & Information Systems from Virginia Polytechnic Institute. He holds the Certified Public Accountant designation, is a CFA Charterholder and a member of the CFA Institute.
John C. Duni, CPA has been promoted to Associate. He has been with Matrix’s Downstream Energy & Convenience Retail Group since May 2015 and has already helped advise on seven successful engagements since joining Matrix. Mr. Duni was previously an Associate Equity Analyst with BB&T Capital Markets and a Senior Associate with the Assurance & Advisory Services Group at Keiter. He received a B.B.A. in Management from James Madison University. He also received a Post-Baccalaureate Accounting Certificate from Virginia Commonwealth University, holds the Certified Public Accountant designation and is a CFA Level III candidate.
Mr. Kelso, President of Matrix, said, “We congratulate David on his promotion and selection as Head of our Consumer & Industrial Products Group. He has worked exceptionally hard to earn this promotion and we look forward to working with him to grow and expand our presence in these industries. We congratulate William, Stephen and John on their promotions and are pleased to recognize their outstanding contributions to the company. We are excited to have them as part of the foundation on which we continue to build the firm.”
Matrix Announces the Successful Sale of Leonard E. Belcher, Inc.’s Terminals and Commercial Fuels and Wholesale Distillate Businesses
RICHMOND, VA - February 1, 2017 - Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent middle-market investment bank, announces the successful sale of Leonard E. Belcher, Inc.’s (“L.E. Belcher” or the “Company”) distillate terminal assets and commercial fuels and wholesale distillate businesses to Sprague Operating Resources LLC, a subsidiary of Sprague Resources LP (“Sprague”) (NYSE: SRLP).
The Company’s assets acquired by Sprague consist of two pipeline supplied distillate terminals and a distillate storage facility with a combined shell capacity of 295,000 barrels, all located in Springfield, Massachusetts. Also included in the transaction was L.E. Belcher’s commercial fuels and wholesale distillate businesses with annual sales in excess of 50 million gallons. L.E. Belcher has served customers in Connecticut, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont for over 85 years. The transaction does not include L.E. Belcher’s retail assets or branded and unbranded wholesale gasoline businesses.
L.E. Belcher is a well-established, independent, multi-branded marketer of petroleum products based in Springfield, Massachusetts. The Company will continue to own and operate their chain of retail gasoline stations and convenience stores and their network of branded and unbranded gasoline dealer accounts.
L.E. Belcher, Inc. began operations in the late 1920’s in Springfield. Mr. Charles Hough purchased the business from Leonard Belcher in the early 1950’s. The Company was sold to Mr. Hough’s son, Edward Hough, President, in the 1990’s. Under Edward’s leadership and direction, and assisted by David Ryan, Vice President, the Company has continued the tradition of delivering quality products and exceptional customer service as they have grown both their retail and wholesale footprint into a multi-state, multi-branded petroleum distribution enterprise with a reach that has stretched as far south as New Jersey and Pennsylvania.
Mr. Hough commented, “Matrix has done a phenomenal job of guiding us in this process. From the very beginning Matrix has demonstrated a professional approach and incredible tenacity to bring their impressive market awareness expertise to bear on our behalf. It has been an incredible journey. I would encourage anyone contemplating such a move to contact Matrix Capital Markets.”
Matrix provided merger and acquisition advisory services to L. E. Belcher, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, transaction structuring, and negotiation of the transaction. The transaction was co-managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Convenience Retail Group and John Underwood, Director. Andrew LoPresti, Associate, and Carlton Zesch, Analyst, also advised on the transaction.
Mr. Underwood commented, “It has been a pleasure to work with Mr. Hough and Mr. Ryan on the sale of the terminal assets and the sale of the commercial and wholesale distillate businesses. We know it was a very difficult decision for Mr. Hough to sell assets that his family has owned for decades. Matrix greatly appreciates being given the opportunity to assist L. E. Belcher in this sale.”
James Shiels, David Webber and Timothy Mulhern of Shatz, Schwartz and Fentin, P.C. served as legal counsel for Belcher.
Matrix Announces the Successful Sale of Campbell Oil Company’s Heating Oil & Commercial Fuels Business to Lykins Energy Solutions
RICHMOND, VA - December 27, 2016 - Matrix Capital Markets Group, Inc. ("Matrix") announces the successful closing on the sale of Campbell Oil Company's (the "Company" or "Campbell Oil") residential heating oil and commercial fuels business to Lykins Energy Solutions. Campbell's heating oil and commercial fuels business is one of the leading wholesale distributors of fuel oil, gasoline, and diesel to residential, agricultural, commercial and industrial customers in central and eastern Ohio.
Headquartered in Massillon, Ohio, Campbell Oil was founded in 1939 by Chester Campbell as a distributor of gasoline, kerosene and fuel oil. The Company experienced significant growth organically and through acquisitions in the 1980s and 1990s, when it made a serious commitment to being a convenience retailer. Brian Burrow, who became President of Campbell Oil in 1997, has continued the Company's growth by building a very talented management team and shaping a successful retail strategy to become a strong convenience brand in Ohio. Going forward, Campbell Oil will focus on the continued growth of its retail operation, BellStores Inc.
Matrix provided merger and acquisition advisory services to Campbell, 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, Managing Director. Sean Dooley, Vice President, Christian Klawunder, Associate, and Kyle Profilet, Analyst, also advised on the transaction.
Mr. Burrow commented, "Spencer Cavalier and the team from Matrix did an outstanding job of representing us in the sale of our Home Heat and Commercial Fuels Division. The process that they employed to move us through this carve-out was very effective. We enjoyed working with their team and thank them all for their hard work."
Mr. Cavalier added, "Matrix is honored to have had the opportunity to work with Brian and his management team to successfully divest its legacy fuel oil and commercial fuels business so that the Company can focus all of its human and financial capital on the continued growth of its extremely successful retail chain."
Dustin Vrabel of Buckingham, Doolittle & Burroughs, LLC served as legal counsel for Campbell Oil.
Matrix Announces the Successful Sale of 7-Eleven’s Wyoming Stores
RICHMOND, VA – December 1, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of two truck stops and one convenience store owned by 7-Eleven, Inc. (the “Company”) to Parkland Fuel Corporation (“Parkland”).
7 Eleven acquired the three facilities (the “Stores”), two of which are located in Cheyenne, Wyoming and one in Laramie, Wyoming, along with seventy-six stores in California as part of its acquisition of CST Brands, Inc.’s (“CST”) West Coast Portfolio, which 7-Eleven closed on July 7, 2016. The Stores, which include a 10,300 square foot truck stop that was recently completely redeveloped, are all high-volume profitable retail locations and are expected to sell more than 15 million gallons of fuels on an annual basis.
Due to the fact that 7-Eleven did not operate any stores in Wyoming at the time of the closing on CST’s West Coast Portfolio, it entered into an agreement with CST to have CST continue to operate the Stores through a temporary lease agreement. 7-Eleven determined it was in its best interest to divest of these Wyoming properties due to its lack of store concentration around these markets, which it has now successfully done after engaging Matrix to manage and execute the sale process.
Matrix provided merger and acquisition advisory services to the Company, which included valuation advisory, marketing of the Stores through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Cedric Fortemps, Managing Director. Stephen Lynch, Senior Associate; and John Duni, Senior Analyst; also advised on the transaction.
Mr. Fortemps commented, “It was a pleasure working with the entire 7-Eleven team on structuring and executing on a process that would achieve their goals, which included a sale in a compressed time frame. It required a lot of hard work by everyone involved to successfully sell the stores exactly five months after being engaged, and finding the right partner in Parkland was certainly one of the keys to being able to accomplish 7-Eleven’s objectives.”
About 7-Eleven, Inc.
7‑Eleven, Inc. is the premier name and largest chain in the convenience-retailing industry. Based in Irving, Texas, 7‑Eleven® operates, franchises and/or licenses more than 60,000 stores in 17 countries, including 10,700 in North America. Known for its iconic brands such as Slurpee®, Big Bite® and Big Gulp®, 7‑Eleven has expanded into high-quality salads, side dishes, cut fruit and protein boxes, as well as pizza, chicken wings, cheeseburgers and hot chicken sandwiches. 7‑Eleven offers customers industry-leading private brand products under the 7-Select® brand including healthy options, decadent treats and everyday favorites, at an outstanding value. Customers also count on 7‑Eleven for bill payments, self-service lockers and other convenient services. Find out more online at www.7‑Eleven.com.
About Parkland Fuel Corporation
Parkland delivers gasoline, diesel, propane, lubricants, heating oil and other high-quality petroleum products to motorists, businesses, households and wholesale customers in Canada and the United States. Our mission is to be the partner of choice for our customers and suppliers, and we do this by building lasting relationships through outstanding service, reliability, safety and professionalism. We are unique in our ability to provide customers with dependable access to fuel and petroleum products, utilizing a portfolio of supply relationships, storage infrastructure, and third party rail and highway carriers to rapidly respond to supply disruptions in order to protect our customers. Find out more online at www.7-Eleven.com.
Robbie Radant Joins Matrix’s Downstream Energy & Retail Group in New Dallas Office
RICHMOND, VA – November 1, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) is pleased to announce Robbie L. Radant has joined the firm as a Director in its Downstream Energy & Retail Group (“Group”). Mr. Radant will head Matrix’s new Dallas office, originate new client assignments, and execute transactions, including mergers and acquisitions, capital raises, and corporate valuations. Matrix is headquartered in Richmond, VA, with offices in Baltimore, MD, Chicago, IL, and now also Dallas, TX.
Mr. Radant joins Matrix after working 28 years for 7-Eleven, Inc. During his tenure with 7-Eleven, he served in multiple operational, finance, and accounting roles. His most recent position was Vice President of Mergers and Acquisitions (M&A). In that capacity, he led 7-Eleven’s acquisition team on closing twenty-seven (27) transactions, totaling 1,400 convenience stores and over 1,200 wholesale fuel sites. The aggregate value of these acquisitions exceed $3 billion. These efforts included the analysis of both public and private companies factoring in a variety of market conditions and various MLP structures. In addition, Robbie executed five (5) structured sell-side divestment processes and oversaw the sale of more than 300 individual store locations. As part of his responsibilities, Mr. Radant also initiated and managed the sale leaseback of fifty (50) small strip centers.
Mr. Radant commented, “I am very pleased to join Matrix as I look to leverage my industry knowledge, relationships, and M&A talents with this highly regarded investment banking firm. After considering all of my options, I chose to join Matrix because, in my experience at 7-Eleven, Matrix clearly and consistently did the best work for their clients. Their total dedication to maximizing value for their clients is reflected in their work product and the highly ethical way they deal with buyers.”
Tom Kelso, Head of Matrix’s Downstream Energy & Retail Group, added, “We are very excited to welcome a professional of Robbie’s experience and stature to Matrix. Not only does he add significant M&A industry experience to our group, he also brings many years of direct petroleum marketing and convenience retailing knowledge that will benefit all of our clients. We believe the addition of Robbie reflects our continued, long term commitment to provide the absolute best transaction evaluation and execution services to our clients and the industries we serve.”
In addition to his role leading 7-Eleven’s M&A efforts, during his tenure at 7-Eleven, Mr. Radant previously served as Director of Payment Acceptance; Manager of Treasury Planning and Analysis; Manager of Financial Planning and Analysis; Senior Financial Analyst of FP & A; Senior/Project Accountant; and, Internal Auditor. Mr. Radant was also responsible for several leasehold negotiations for 7-Eleven’s corporate offices as well as managing the sales process of two corporate headquarters buildings.
Matrix Announces the Successful Sale of F.L. Roberts’ Convenience Store, Car Wash & Jiffy Lube Businesses
RICHMOND, VA - October 18, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of F.L. Roberts and Company, Inc.’s (the “Company”) convenience store, car wash, and Jiffy Lube businesses. The convenience store and car wash businesses were acquired by affiliated companies of Nouria Energy Corporation, and the Jiffy Lube business was acquired by Atlantic Coast Enterprises, LLC.
The Company, headquartered in Springfield, MA, owned and operated a chain of 26 convenience stores and retail fuel outlets, 22 Golden Nozzle car washes, and 9 Jiffy Lube quick lube facilities in the greater Springfield, MA and Hartford, CT markets as well as northern and western Massachusetts. The Company also operates a wholesale motor fuels distribution business and a fuels transportation business in these markets, and these divisions have been retained by the Company with the intent to sell them to Frank Roberts prior to the end of the year.
The Company was founded in 1920 by Frank L. Roberts (“F.L.”) with a single automotive and tire store in Springfield, MA. In the early years, the Company grew its chain of service stations and established and expanded a fuel oil and motor oil business. In the early 1970’s, the Company sold the fuel oil division in order to focus on growing the gas station portfolio, and in the later 1970’s, the Company began to concentrate on new businesses that would complement the gas stations – a chain of Golden Nozzle car washes, a chain of Jiffy Lube quick lube facilities, a diner, and even a small hotel and discount tobacco shop. Through the leadership of four generations of the Roberts family, the Company grew into a large, diversified business with highly recognizable brands, a loyal customer base, and an industry-leading rewards program. The Company is family-owned and managed by F.L.’s grandson, Steven Roberts – President, Steven’s nephew, Frank Roberts – Managing Director & VP Wholesale/Commercial Sales, Steven Sanchioni – CFO, and Richard Smith – VP of Operations.
The assets divested by the Company are comprised of high volume locations and were predominately fee owned properties. The convenience stores sell Sunoco, Valero, and F.L. Roberts branded fuels, and the Golden Nozzle facilities wash over 2.5 million cars per year. The Jiffy Lube facilities consistently lead the entire Jiffy Lube national system in revenue per store. The Company’s wholesale business has grown dramatically over the last few years, and Frank Roberts, who manages the wholesale fuels and fuels transportation businesses, plans to continue to grow these businesses after acquiring them from the Company later this year.
Matrix provided merger and acquisition advisory services to the Company, which included valuation advisory, marketing of the various divisions of the Company through customized, confidential, structured sale processes, and negotiation of the transactions. The transaction was co-managed by Cedric Fortemps, Managing Director and Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Team. Vance Saunders, Director; Stephen Lynch, Senior Associate; John Duni, Senior Analyst; and Kyle Profilet, Analyst, also advised on the transactions.
Steven Roberts commented, “I have been the ‘shepherd’ of the F.L. Roberts’ company assets for over forty years and have been fortunate to lead Roberts with the help of a talented executive and advisory team adding very successful ventures in other related business spaces. Many of these ventures have become consumer favorites in our region. Selling was the most difficult challenge I have ever had to face. Matrix quickly grasped the meaningfulness of our asset mix and how to capitalize on the significant value our team had created. This was a challenge they crafted into a successful sale strategy. I am very indebted to their talented team.”
Mr. Fortemps commented, “The Roberts family built an extremely unique, successful retail business with an extraordinarily loyal customer base that found tremendous value in the Company’s integrated loyalty program at all of its convenience stores, car washes and Jiffy Lubes. It was a pleasure to work with Steve Roberts, Frank Roberts, Steve Sanchioni and Richard Smith, and we are exceptionally pleased that both remaining generations in the business were able to accomplish their goals through the transactions.”
Bruce Raphael, David Stringer, Ahmed Sidik, and Alex Mancebo of Jones Day and Craig Brown of Doherty, Wallace, Pillsbury & Murphy, P.C. served as legal counsel for the Company.
Jack Krichavsky, President of Almada Corp., and Mark Sisitsky also advised Steven Roberts on the transactions.
About Nouria Energy
Founded in 1989 by Tony El-Nemr, Nouria Energy is one of New England’s largest and most trusted family-owned and operated convenience stores and fuel retailers. The company owns and operates 116 convenience store locations and 49 car washes in Massachusetts, Maine, New Hampshire, Rhode Island, and Connecticut. Nouria operates a transport logistics business and supplies its company operated locations and wholesale customers with Shell, Irving, Gulf, and Sunoco branded fuels, as well as private and unbranded brands throughout New England.
About Atlantic Coast Enterprises, LLC
Atlantic Coast Enterprises, LLC (ACE) is a Jiffy Lube franchisee formed by the partnership of veteran lube operators Al Chance, Steve Allison and Dan Ramras, who together have over half a century of experience in the fast lube industry. With 61 stores in Florida, the Carolinas and Western Massachusetts, ACE is one of the largest franchisee companies in the Jiffy Lube network. The company currently has over 750 employees, and continues to grow by hiring and developing the best talent in the industry.
Matrix Announces the Successful Sale of Dealers Building Supply, Inc.
RICHMOND, VA – October 6, 2016 – Matrix Capital Markets Group, Inc. (“Matrix”) is pleased to announce that it advised on the successful acquisition of Dealers Building Supply, Inc., d/b/a Dealers Wholesale (the “Company”) supported by The Firefly Group and Kocolene Development Corporation. The investment positions the Company to further enhance market penetration and expand its distribution capabilities. Matrix served as the exclusive advisor to Dealers Wholesale.
Dealers Wholesale, based in Indianapolis, IN, is a value-added distributor of doors, door hardware, and fireplaces to homeowners, professional contractors and developers in the residential and commercial end-markets. The Company was led by Mike and Jeff Roache for over thirty years. Together they worked to establish a reputation for customer service and quality and transferred those same core principles to the current management team.
The Firefly Group (www.thefireflygrp.com) invests in growth-oriented, lower middle-market companies in the Midwest. Kocolene Development Corporation (www.kocolene.com) operates several businesses in Indiana and also invests in companies in the Midwest.
About Matrix’s Building Products Group
Matrix’s Building Products Group has worked closely with many manufacturers, distributors, service providers, and retailers of building materials and related products. Over the years our professionals have gained a thorough understanding of the architectural specification and contractor bidding process, the impact of fluctuating commodity prices and the importance of inventory management. Team members have expertise within many sub-sectors including, architectural products, automation, cabinetry/hardware, concrete & masonry, decking, erosion control/geotextiles, fireplace construction, fire protection, flooring, furnishings/lighting, green build, HVAC, home automation, kitchen/bath, metal fabrication & erection, millwork, pipes valves & fittings, roofing, stone/hardscapes, waterworks and windows/doors.
Matrix Announces the Successful Sale of State Oil Company’s Retail Assets and Wholesale Fuels Distribution Business
RICHMOND, VA – September 27, 2016 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of State Oil Company and certain related entities’ (collectively “State Oil” or the “Company”) retail assets and wholesale fuels distribution business to CrossAmerica Partners LP (NYSE:CAPL) and its affiliates (collectively “CrossAmerica”).
Immediately prior to the closing of the transaction, the Company’s portfolio acquired by CrossAmerica consisted of three company operated retail convenience stores, 50 lessee dealers, 24 supply accounts, two non-fuel tenant locations, and three non-operating sites. The transaction included the real estate at 57 locations and the leasehold interest at one site; with the exception of one site located in Wisconsin, all of the stores are located in the greater Chicago metropolitan area. Also included in the transaction are the seller-financed land contracts associated with five of the Company’s supply accounts.
In separate but related transactions, four locations owned in fee simple by the Company were sold or are currently under contract to be sold to three other unrelated buyers.
After buying the Company in 1973, Peter and Bill Anest grew the Company over more than forty years into one of the largest petroleum distributors in the greater Chicago area. Over the past five years, Matrix has worked with State Oil as the Company and its owners have evaluated their strategic business plans, which ultimately culminated in the decision to sell the Company. Peter and Bill Anest, owners of State Oil, commented, “We greatly appreciate the advice and expertise that Matrix provided in the sale of the Company.”
Matrix provided merger and acquisition advisory services to State Oil, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, transaction structuring, and negotiation of the transaction. The transaction was co-managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Group, and John Underwood, Director. Stephen Lynch, Senior Associate, and John Duni, Senior Analyst, also advised on the transaction. Mr. Underwood commented, “It has been a pleasure to work with the Anest family and to assist them in the sale of the Company. We truly value the relationship that was built with the family over the past five years and the opportunity to represent State Oil.”
Richard Nikchevich and Jeremy Segal of Barack Ferrazzano Kirschbaum & Nagelberg LLP served as legal counsel for State Oil.
Matrix Announces the Successful Sale of Budget Signs, LLC
RICHMOND, VA – September 27, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of Budget Signs, LLC (“Budget Signs” or the “Company”) to a Salem, Virginia-based franchisee of FASTSIGNS International, Inc. (“FASTSIGNS”). FASTSIGNS is a Carrollton, Texas-based portfolio company of Levine Leichtman Capital Partners. Matrix served as exclusive advisor to Budget Signs and the transaction was led by Mike Morrison, David Shoulders, William O’Flaherty and Pratik Thakral.
Budget Signs, headquartered in Roanoke, Virginia, is a full-service sign and crane company that fabricates, installs and services signs in western Virginia, southern West Virginia and northern North Carolina. The company has grown to become recognized as the locally-owned market leader in the geographies it serves and will continue to provide regional service and installation to its diverse customer base under FASTSIGNS’ ownership.
Ed Armentrout, President of Budget Signs commented, “We are very pleased to have transitioned the ownership of our business to a buyer committed to the continued success and long-term growth of Budget Signs. The Matrix team proved to be extremely valuable in running a highly disciplined process that identified a buyer that satisfied the objectives we were looking to accomplish.” David Shoulders, Director at Matrix, added, “It is clear that Ed and Tori Armentrout placed a tremendous amount of importance on securing the right fit for the employees of Budget Signs who helped build the business. We are thrilled that this transaction was successful for them personally and for the ongoing business culturally.”
About Matrix’s Business Services Group
Matrix’s Business Services Group merger & acquisition expertise stems from numerous engagements and extensive research in a number of segments, including call centers, marketing, printing & engraving, staffing, systems integration, tele-services, telecommunications, transportation, utility services and waste management. Team members draw upon a deep bench of transaction experience and analytical resources to successfully manage and complete a wide range of corporate finance transactions, including mergers, acquisitions, and capital raising of debt and equity.
About Matrix Capital Markets Group, Inc.
Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with additional offices in Baltimore, MD and Chicago, IL. Since 1988, Matrix has provided merger & acquisition and financial advisory services for privately-held, private-equity owned and publicly traded companies, including company sales, recapitalizations, corporate divestitures, corporate recovery, management buyouts, capital raises of debt & equity, corporate valuations and fairness opinions. Matrix has served clients in a wide range of industries, including downstream energy & retail, healthcare, industrial products, building products, lumber, consumer products and business services. For additional information or to contact our team members, please visit www.matrixcmg.com.
Securities offered by MCMG Capital Advisors, Inc., an affiliate of Matrix Capital Markets Group, Inc., Member FINRA & SIPC.
Matrix’s Business Services Group Announces Transaction Closing
RICHMOND, VA – July 12, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”), is pleased to announce the recapitalization of Business and Legal Resources (“BLR”) by Northcreek Mezzanine, Tenth Street Capital and management.
BLR, headquartered in Brentwood, TN, is a leading provider of compliance and training solutions in the B2B arena and offers a suite of web-based compliance products, mobile applications, employee training platforms, and digital and live professional development opportunities for the audiences it serves. The BLR parent brand comprises subsidiaries HRHero, MLeeSmith Publishers, HCPro, HealthLeaders Media, Patient Safety & Quality Healthcare, and Personnel Policy Service.
The recapitalization of BLR coincides with their acquisition of the HR, Environmental, and Healthcare assets of Thompson Information Services, another industry leader in compliance, from Columbia Books. This transaction also underscores BLR’s commitment to simplifying compliance for their audiences and expanding their market footprint through growth and partnership.
Matrix served as the exclusive financial advisor to BLR. The transaction was managed by Mike Morrison, David Shoulders, William O’Flaherty and Pratik Thakral.
About Matrix’s Business Services Group
Matrix’s Business Services Group merger & acquisition expertise stems from numerous engagements and extensive research in a number of segments, including call centers, marketing, printing & engraving, staffing, systems integration, tele-services, telecommunications, transportation, utility services and waste management. Team members draw upon a deep bench of transaction experience and analytical resources to successfully manage and complete a wide range of corporate finance transactions, including mergers, acquisitions, and capital raising of debt and equity.
Matrix Announces the Successful Sale of Mutual Oil Co., Inc.’s Unbranded Wholesale Fuels Distribution Business
RICHMOND, VA – June 1, 2016 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of Mutual Oil Co., Inc.’s (“Mutual” or “Company”) high volume unbranded wholesale refined fuels business to Truman Arnold Companies (“TAC Energy”), an independent national wholesale fuels distributor of refined petroleum products, headquartered in Dallas, Texas. Mutual distributes unbranded refined petroleum products to high volume retailers, resellers, commercial entities, governments and municipalities, and marinas in 17 states, with a focus on the Northeast and Mid-Atlantic regions.
Founded in 1937, Mutual has grown to become one of the largest and most diversified privately held petroleum distributors in the U.S. and enjoys a reputation of providing high quality products, service and logistics to its customers. The sale of the business to TAC Energy significantly expands the fuel supply, logistics capabilities, and support services that Mutual can provide to its current and future customers. Steve Shaer, Executive Vice President of Mutual Oil commented on the process, “As in the past, Matrix showed great professionalism in managing the process.”
Matrix provided merger and acquisition advisory services to Mutual, which included valuation advisory, transaction structuring, marketing and negotiating. The transaction was co-managed by Spencer Cavalier, Managing Director, and Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Group. Andrew LoPresti, Associate, also advised on the transaction. Mr. Cavalier commented, “This is a bittersweet end to a long-term advisory relationship with the Mutual shareholders and their extremely professional and talented management team. It’s been a relationship built on trust, allowing us to propose and execute on mandates to enhance shareholder value in a very deliberate manner. We greatly appreciate our relationship with Steve and Ed and their confidence in us.”
Jeffrey Leiter of Leiter & Cramer PLLC served as legal counsel for Mutual.
Matrix Announces the Successful Sale of District Petroleum Products, Inc. & Related Entities
RICHMOND, VA – May 31, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of District Petroleum Products, Inc. & Related Entities (the “Company” or “District Petroleum”) to an affiliate of Dunne Manning, Inc. The Company, headquartered in Huron, OH, owns and operates twenty-two (22) Hy-Miler convenience stores and distributes and transports motor fuels to branded dealers and marinas throughout Ohio.
District Petroleum was founded in 1951 by a group of Sandusky Ohio industrialists that needed fuel and lubricants for their factories, boats and airplanes. The Company eventually made the decision to contract with Shell Oil Company for all of its petroleum needs, and in the early years operated as a small jobbership, distributing gasoline to a few dealer-operated locations, as well as selling fuel oil to home heat customers and lubricants to industrial accounts. With gasoline marketing beginning to change with the advent of self-serve gasoline and competitive street pricing, the Hy-Miler brand was born in 1976. Hy-Miler then became the name of the convenience store chain as new stores were added.
Matrix provided merger and acquisition advisory services to the Company, which included valuation advisory, marketing of the Company through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Spencer Cavalier, Managing Director and Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Team. Sean Dooley, Vice President, and Christian Klawunder, Associate, also advised on the transaction.
Scott Stipp, President of District Petroleum, commented “This was a tough process; bittersweet. I could not imagine attempting to navigate these waters without the knowledge and support of Matrix and their team of professionals.“
Mr. Cavalier commented, “Mike and Scott Stipp along with their Chief Financial Officer, Timothy Donnelly, and V.P. of Retail Gary Gockstetter have built a very strong company over the decades, and we were honored to advise the shareholders through a complex transaction that resulted in a highly successful exit from the industry and the monetization of significant family capital.”
Russell Rosler, Frank Zonars, Kristin Watt and Theodore Smith of Vorys, Sater, Seymour and Pease LLP, served as legal counsel for District Petroleum.
Matrix Announces the Successful Sale of Harbor Petroleum of New England, Inc.'s, Contract Dealer Business
RICHMOND, VA – May 4, 2016 - Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of the contract dealer business owned by Harbor Petroleum of New England, Inc. (the “Company” or “Harbor Petroleum”) to SEI Fuel Services, Inc., a wholly owned subsidiary of 7-Eleven, Inc. The Company, headquartered in Naugatuck, CT, owns and operates convenience stores and supplies fuels throughout Connecticut.
John Baker started Harbor Petroleum in 1981 with one station in Naugatuck and grew the business to its current level over a 35 year period. Mr. Baker has elected to reduce the scale of Harbor Petroleum, but will continue to own and supply a small group of stations that he primarily retains a fee or leasehold interest in.
Matrix provided merger and acquisition advisory services to Harbor Petroleum, on the divestiture, which included valuation advisory, marketing of the assets through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Team and John Underwood, Director. Vance Saunders, Director and Andrew LoPresti, Associate, also advised on the transaction.
John Baker, the owner of Harbor Petroleum, said “During the entire sales process, the analysts and individuals that represent Matrix were professional in every manner. I firmly believe that our Company obtained not only the broadest regional coverage exposure possible but a representative national exposure to qualified buyers as well."
Mr. Underwood commented, “Matrix is very happy to have helped John achieve his goal of selling the contract dealer business of Harbor Petroleum, we appreciated the opportunity to work with him to achieve his goals.”
Craig Sylvester and Christine Miller of Reid and Riege, P.C., served as legal counsel for Harbor Petroleum.
Matrix Celebrates Record Year in 2015, Announces Expansion of Industry Groups and Promotions
RICHMOND, VA – April 13, 2016 – Matrix Capital Markets Group, Inc. ("Matrix") is pleased to announce that it successfully advised on 25 merger and acquisition transactions in 2015. We would like to thank all of our clients for the privilege of working with them this past year and appreciate the trust they placed in us as their advisor.
The transactions included sell-side and buy-side advisory on company sales, recapitalizations and corporate divestitures for family owned, private equity owned and publicly traded companies. Our 21 investment banking professionals, who serve clients in the Downstream Energy & Retail, Healthcare, Consumer & Industrial Products and Building Products industries are passionate about helping our clients achieve the best result possible and are proud to have advised on transactions totaling over $1.6 billion in 2015.
In addition, Matrix would like to recognize certain individuals whose continued contributions to the firm and the clients we serve resulted in recent promotions.
Sean Dooley, CFA, ASA is a member of Matrix's Downstream Energy & Retail Group and has been promoted to Vice President. Since joining the firm in 2010, Mr. Dooley has been involved in over twenty successful transactions. He is a holder of the Chartered Financial Analyst designation and member of the CFA Institute. He received a B.S.B.A. with a concentration in Finance from East Carolina University.
Christian Klawunder has been a member of Matrix’s Downstream Energy & Retail Group since joining the firm in 2014 and has been promoted to Associate. Mr. Klawunder was previously an Analyst with Ewing Bemiss & Co. He received a B.B.A with a concentration in both accounting and finance, summa cum laude from Loyola University Maryland.
Matrix’s Downstream Energy & Retail Group and Healthcare Group have also added new team members.
Carlton Zesch, Analyst, who has been with Matrix since 2015 and has proven to be a valuable resource to multiple industry verticals within the firm, has joined Matrix’s Downstream Energy & Retail Group. He is a graduate of the University of Richmond’s E. Claiborne Robins School of Business where he received a B.S. in Business Administration with a concentration in Finance.
John Ellison, CFA, Associate, is now a member of Matrix’s Healthcare Group. Prior to joining Matrix in 2015, Mr. Ellison was an Associate with Ewing Bemiss & Company and an Equity Research Associate in the Engineering & Construction and Energy Infrastructure Group with BB&T Capital Markets. He graduated from the College of William & Mary with a B.A. in Finance and a second major in Economics. He is a CFA Charterholder and member of the CFA Institute.
About Matrix Capital Markets Group, Inc.
Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with additional offices in Baltimore, MD and Chicago, IL. Since 1988, Matrix has provided merger & acquisition and financial advisory services for privately-held, private equity owned and publicly traded companies, including company sales, recapitalizations, asset divestitures, corporate recovery, management buyouts, capital raises of debt & equity, corporate valuations and fairness opinions. Matrix has served clients in a wide range of industries, including building products, business services, consumer products, downstream energy & retail, healthcare, industrial products and lumber. For additional information or to contact our team members, please visit www.matrixcmg.com.
Securities offered by MCMG Capital Advisors, Inc., an affiliate of Matrix Capital Markets Group, Inc., Member FINRA & SIPC.
Matrix to Moderate SIGMA 2016 Spring Convention Opening General Session Panel
RICHMOND, VA - April 7, 2016 - SIGMA: America's Leading Fuel Marketers and Matrix Capital Markets Group, Inc. ("Matrix") are pleased to announce that Matrix will moderate the Opening General Session at the SIGMA 2016 Spring Convention, May 10-13, in Scottsdale, AZ, "Using Alternative Capital to Grow Your Company - Successful Entrepreneurs Share Their Experiences: Sam Susser, Joe Topper, and Hank Heithaus".
Some of the industry's most successful owners have chosen to employ alternative types of capital to grow their companies. Private equity, mezzanine debt, sale-leaseback, and asset based loan structures can be alternative avenues of capital to explore beyond owner's equity and traditional senior bank debt. Originated, structured and presented by Matrix's Thomas Kelso and Spencer Cavalier, this interactive panel will ask how leaders evaluate these forms of alternative capital and ultimately how these decisions are made to move to alternative capital to fuel company growth.
Panel participants in this high-level presentation include Hank Heithaus, CEO, Empire Petroleum Partners GP, LLC; Sam Susser, President, Susser Holdings II, LP; and Joseph Topper, Member of the Board of Directors for CST Brands and General Partner, CrossAmerica Partners, L.P. The Panel will be moderated by Thomas Kelso, Managing Director & Principal, Head of Matrix's Downstream Energy & Retail Group.
Hank J. Heithaus, joined Empire Petroleum in August, 2013 and has full P&L responsibility and directs all business operations and staff functions of the company. Mr. Heithaus, who has over 40 years of experience in the petroleum industry, plays an integral role in driving a more aggressive merger and acquisition agenda, thus enabling Empire to take more market share in the areas it serves, and develop business opportunities that will take them into new markets.
Sam L. Susser is the President of Susser Holdings II, L.P. From 1988 to 2014, Mr. Susser led the growth of Susser Holdings Corporation from a five store operation to a $6.7 billion enterprise that was a member of the Fortune 500 and employed 12,000 team members. The business was sold to ETP on August 29, 2014, and Mr. Susser continued to serve as Chairman of the Board until May 2015. Prior to founding the Southguard Corporation (predecessor to Susser Holdings) in 1988, Mr. Susser spent 1985-1987 with Salomon Brothers Inc in New York City and in Dallas in the corporate finance division and in the mergers and acquisitions group.
Joseph V. Topper currently runs the Topper Family office. He retired from CrossAmerica Partners in September 2015. Previous to selling Lehigh Gas Partners GP to CST Brands, he was the CEO and Chairman of the Board of Lehigh Gas Partners, a company taken public in October 2012. Mr. Topper serves as a member of the Board of Directors of CrossAmerica GP LLC, member of the Board of CST Brands, as Vice Chairman Board of Trustees for Villanova University and as a director of Lehigh Valley PBS.
Thomas E. Kelso is Head of Matrix Capital Markets Group's Downstream Energy & Retail Group and directs the firm's Baltimore office. He created the Downstream Energy Group in 1997 to provide financial advisory services to companies engaged in the petroleum marketing and convenience store industries. In addition, he manages the firm's Restructuring, Reorganization and Bankruptcy practice. He is a member of the Society of Independent Gasoline Marketers of America (SIGMA), the National Association of Convenience Stores (NACS), the NACS Hunter Club and the Turnaround Management Association (TMA). Mr. Kelso currently serves as Chairman of the Maryland Stadium Authority and as Vice Chair & Director of the Foundation for the Preservation of Government House of Maryland, Inc.
About SIGMA
Founded in 1958 as the Society of Independent Gasoline Marketers of America (SIGMA), SIGMA has become a fixture in the motor fuel marketing industry. After fifty years of leadership, SIGMA is the national trade association representing the most successful, progressive, and innovative fuel marketers and chain retailers in the United States. From the outset, the association has served to further the interests of both the branded and unbranded segment of the industry while providing information and services to members. SIGMA's approximately 260 corporate members command nearly 50 percent of the petroleum retail market, selling approximately 80 billion gallons of motor fuel each year. These member companies operate throughout the United States and Canada.
Regular membership in SIGMA is available to companies involved in motor fuel retailing or wholesaling that are not owned by a refiner. In addition, Associate membership is available to fuel supplier companies and to companies that offer financial services, fuel transport services, and fleet card services. SIGMA member companies have long been recognized, both within and outside the industry, as the most aggressive, innovative, and price competitive segment of petroleum marketers. For additional information, please visit www.sigma.org.
Matrix’s Healthcare Group Announces the Successful Sale of Next Generation Children’s Centers
RICHMOND, VA – February 23, 2016 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful sale of Next Generation Children’s Centers (“NGCC” or the “Company”) to Cadence Education, Inc. (“Cadence”), a Scottsdale, AZ based portfolio company of Audax Group, Inc. Matrix served as exclusive financial advisor to NGCC. The transaction was led by David Keys, Head of Matrix’s Healthcare Group, along with David Endom and Brady Hill.
Next Generation Children’s Centers is a leading provider of early education and childcare services in the Commonwealth of Massachusetts. Founded by Donna Kelleher in 1993, the Company has grown from a single location to ten locations across the Boston metropolitan area and has an enrollment of more than 2,000 students. The Company has established a premier reputation for the quality of its educational programs and the depth of care it provides to students and families.
“It was an absolute pleasure to work with Donna and her team,” said Keys. “Donna’s focus on finding the right company to provide continuity to the NGCC educators and the families they serve was of primary importance and Cadence’s focus on maintaining the brand identity of acquired schools was an excellent fit. We are excited to watch the continued growth of Next Generation within the Cadence Education family of schools.”
“Matrix’s professionalism resulted in a positive outcome for all parties,” said Kelleher. “David, David, and Brady were focused on understanding our objectives and providing alternatives, gave sound advice, and did an outstanding job managing the process.”
Cadence Education is one of the ten largest providers of childcare services in the United States with a platform of more than 150 learning centers. The acquisition of NGCC marks Cadence’s entry into the Massachusetts market and will significantly expand Cadence’s presence in the Northeast.
Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo acted as legal advisor to NGCC on the transaction. Cadence was represented by Goulston & Storrs PC.
About Matrix’s Healthcare Group
Matrix’s Healthcare Group was founded to provide differentiated advisory services to lower middle market companies in the sectors of Health, Wellness, and Education. Our professionals have extensive experience as advisors, investors, and operators within these markets and understand the nuances and regulation that influence performance and market positioning. Team members have executed more than 25 advisory transactions with an aggregate deal value in excess of $2.5 billion. Since launching in December 2014, the Healthcare Group has closed four transactions, each of which were in its core sectors.
About Matrix Capital Markets Group, Inc.
Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with additional offices in Baltimore, MD and Chicago, IL. Since 1988, Matrix has provided merger & acquisition and financial advisory services for privately-held, private-equity owned and publicly traded companies, including company sales, recapitalizations, asset divestitures, corporate recovery, management buyouts, capital raises of debt & equity, corporate valuations and fairness opinions. Matrix has served clients in a wide range of industries, including building products, business services, consumer products, downstream energy & retail, healthcare, education, industrial products, lumber and media & communications. For additional information or to contact our team members, please visit www.matrixcmg.com.
Securities offered by MCMG Capital Advisors, Inc., an affiliate of Matrix Capital Markets Group, Inc., Member FINRA & SIPC