Situation
W.H. Rusher and Son, later Rusher Oil Company (“Rusher” or the “Company”) was founded in 1963 by W.H. Rusher as a commission marketing agent with Amoco Oil Company. Later, Bob L. Rusher reoriented his father’s company towards retail fuel sales, purchasing some of the most desirable real estate in its marketing territory for service stations.

Bob L. Rusher’s sons, Bobby and Joey Rusher, joined the business in the 1980s and over the next several years continued to grow by building new-to-industry stores and remodeling older locations. During this time, Rushco Food Stores Inc. was organized and became a successful chain of retail convenience stores and car washes.

Immediately prior to sale, Rusher Oil Company distributed Amoco and BP fuels to 19 branded convenience stores and one commissioned marketer location within a 20-mile radius of its Salisbury, North Carolina headquarters, and Rushco Food Stores, Inc. operated 19 branded convenience stores under the name Rushco Markets.

Matrix was engaged to perform a valuation of the Company and advise on a sale process. The shareholders ultimately decided to exit the retail convenience store and petroleum marketing business to focus on other ventures.

Objective
To customize, execute, and complete a confidential sale process that would allow the Company’s shareholders to realize maximum after-tax value upon the sale of Rusher or its assets.

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

Multiple competitive offers were received, and Sampson-Bladen Oil Company, Inc. was ultimately selected as the acquirer.

Matrix assisted Rusher and their tax advisors to understand the allocation of the purchase price to each entity and the tax implications of a sale to maximize after tax proceeds to shareholders.

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

The transaction with Sampson-Bladen Oil Company, Inc. closed in November 2021.