Situation
The Andretti Petroleum Group (“Andretti” or “Company”) was founded in 1997 when racing icons Mario Andretti, Michael Andretti, long-time Andretti family advisor John Caponigro and Texaco executive M.J. Castelo launched a startup Texaco wholesale business in northern California.

Over the next 25 years, M.J. Castelo grew the Company to be one of the largest convenience retail and fuels distribution businesses on the West Coast through organic growth and a series of acquisitions, growing the business to nearly 170 convenience retail and fuels distribution assets in California, Oregon and Washington.

Over the course of several years, the owners of the Company retained Matrix to perform both a gifting valuation and a strategic market valuation, and ultimately decided to exit the industry.

Immediately before and throughout the sale process, Matrix also provided buy-side advisory services as Andretti completed the acquisition of Stein Oil, which was deemed likely to be accretive to the shareholders in the sale of the Company.

Objective
To customize, execute, and complete a confidential sale process that would allow Andretti’s shareholders to realize maximum after-tax value upon the sale of the Company, with an accretive contribution from its final acquisition, Stein Oil.

Solution
Matrix provided merger and acquisition advisory services to Andretti, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction.

During the sale process, Matrix further supported the Company with buy-side analysis of Stein Oil, helping to determine the acquisition’s expected impact on the sale of Andretti as a whole.

Multiple competitive offers were received for the Company, and H&S Energy, LLC (“H&S”) was ultimately selected as the acquirer.

Matrix assisted in the negotiation of the purchase agreement and coordinated the due diligence and closing process.

The transaction with H&S closed in March 2024.