Matrix Announces the Successful Sale of Best Oil Company
RICHMOND, VA – March 20, 2015 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of the nineteen (19) Little Store brand c-stores of Best Oil Company (the “Company”) to TravelCenters of America LLC (NYSE: TA) and the sale of Best Oil Company’s wholesale fuel supply business and transportation division to NuWay Cooperative, a Minnesota Cooperative based in Trimont, MN. Best Oil Company, headquartered in Cloquet, MN, directly operated all nineteen (19) Little Store prior to the sale. Eighteen (18) of the sites were owned fee simple with one (1) site being a leasehold. The stores are located in Northeastern Minnesota and Superior, Wisconsin and offer high quality fuels, as well as a full range of convenience items to their customers. Best Oil Company’s wholesale fuel supply business consists of annual sales of over 27 million gallons serving approximately 110 customers in Minnesota and Wisconsin. The transportation division has eight (8) tractors and eight (8) trailers that deliver fuel to Best Oil’s company operated stores and wholesale customers.
The Best Oil Company was founded in 1939 by Mr. R.W. Lindholm who was later joined in the business by his son-in-law, Mr. Daryl L. McKinney. Mr. McKinney managed the Company from 1961 to 1999, and opened the first of the Little Store in 1971. Mr. McKinney transitioned the business to his sons John, Michael and Christopher in 1999 who together continued to grow the Little Store brand and the Company’s wholesale fuel business and transportation division. Throughout the 2000’s, the McKinney brothers continued to focus on the Little Store division by razing and rebuilding several locations and upgrading all stores in order to provide exceptional service to their customers. Over the years, several generations of McKinneys have contributed to growing the Little Store division to nineteen (19) company-operated stores and one (1) franchise location, and growing the wholesale fuel supply business.
Matrix provided merger and acquisition advisory services to Best Oil 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 Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Team and John Underwood, Director. Stephen Lynch, Associate also advised on the transaction.
Mr. John McKinney, President of Best Oil said, “Matrix has helped Best Oil management review its strategic options since 2008. When the decision was made to sell we chose Matrix for their extensive industry expertise and professionalism. The Matrix team did a great job of leading the sales process and maximizing the value of the Little Store division, the wholesale supply operations, and the transportation division. They helped guide Best Oil management through the sale process, worked with Best Oil’s legal counsel to negotiate the transaction and helped manage the due diligence and closing process. We greatly appreciate the job the Matrix team did.”
Mr. Underwood commented, “It was a real pleasure to work with the McKinney family and the Best Oil leadership team. Through our work with Best Oil over the past several years we knew this was a unique opportunity for prospective buyers to acquire a high quality convenience store chain, a wholesale fuel supply business and high quality transportation assets. We know how difficult it is to a sell a family business and it was a very positive experience working with the Best Oil team through the entire sale process. We are very grateful for the opportunity to have represented Best Oil Company in the sale of the Little Store division and the confidence the McKinney family has shown in Matrix.”
William M. Burns of Hanft Fride served as legal counsel for Best Oil Company. McGladrey LLP provided tax, accounting and structuring advice.
About Matrix’s Downstream Energy & Retail Group
Matrix’s Downstream Energy & Retail Group is recognized as the national leader in providing transactional advisory services to companies in the downstream energy and multi-site retail sectors including convenience store chains, petroleum marketers, fuels distributors, retail propane distributors, heating oil distributors, lubes retailers and distributors, terminal operators, fuels transportation companies, hospitality companies, and other specialty retail chains. Team members are dedicated to these sectors and draw upon complementary experiences to provide advisory services to complete sophisticated merger and acquisition transactions, debt and equity capital raises, corporate restructurings, corporate valuations, and strategic planning engagements. Since its inception in 1997, this dedicated group has successfully advised on more than 140 engagements in these sectors with a total transaction value of nearly $5.5 billion. For additional information, please visit www.matrixcmg.com.
About Matrix Capital Markets Group
Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with offices 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 sell-side M&A advisory, company sales, recapitalizations, asset divestitures, corporate valuations, corporate recovery, buy-side M&A advisory, capital raises of debt & equity, management buyouts, corporate advisory 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, lumber and media & communications.
Securities offered by Matrix Private Equities, an affiliate of Matrix Capital Markets Group, Inc., Member of FINRA and SIPC.