Matrix Announces the Successful Sale of CrossAmerica Partners LP’s Fuels Transportation, Heating Oil & Tank Wagon Commercial Fuels Businesses
RICHMOND, VA – November 4, 2015 – Matrix Capital Markets Group, Inc. (“Matrix”) announces the successful closing on the sale of the fuels transportation, residential heating oil and tank wagon commercial fuels businesses owned by CrossAmerica Partners LP (the “Company” or “CrossAmerica”) that were formerly operated by wholly owned subsidiary, Petroleum Marketers, Inc. (“PMI”) to multiple buyers. Reliable Tank Line, LLC, a division of Quality Oil Company, LLC, purchased the fuels transportation business. The heating oil and tank wagon commercial fuels business was sold by terminal branch to multiple buyers: Quarles Petroleum, Inc.; Davenport Energy, Inc.; and, Woodfin Heating, Inc.
In May of 2014, Lehigh Gas Partners LP, the predecessor of CrossAmerica, purchased PMI, which at the time operated two primary lines of business: convenience stores and petroleum products distribution. CrossAmerica subsequently decided to divest the fuels transportation, residential heating oil and tank wagon commercial fuels businesses, which consisted of customers, bulk storage plants, operational facilities and fleet assets that served customers throughout the Commonwealth of Virginia. PMI was incorporated in 1949, and has been supplying and delivering a variety of petroleum products to commercial, dealer, governmental and residential customers for over 60 years.
Matrix provided merger and acquisition advisory services to CrossAmerica, on the above divestitures, 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 Spencer Cavalier, Managing Director and Cedric Fortemps, Managing Director. Andrew LoPresti, Associate, also advised on the transaction.
David Hrinak, Executive Vice President and COO of CrossAmerica said, “Matrix’s advice, assistance and professionalism throughout this process has resulted in a positive outcome for all parties. As always, it was a pleasure working with the folks at Matrix.”
Messrs. Cavalier and Fortemps commented, “Matrix is very appreciative to continue our advisory relationship with CrossAmerica and its general partner, CST Brands, Inc. We are extremely pleased with the results of this process.”
Dennis McCarthy and Marc Albanese of Davison & McCarthy, P.C. served as legal counsel for CrossAmerica.