Matrix Announces the Successful Sale of Lykins Companies, Inc.
RICHMOND, VA/BALTIMORE, MD – October 1, 2021 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Lykins Companies, Inc., t/a Lykins Energy Solutions, (“Lykins” or the “Company”) on the sale of the Company’s commercial fuels, heating oil & propane, wholesale fuels, and electricity divisions. The commercial fuels, heating oil & propane division (collectively, “Bulk Fuels”) was acquired by World Fuel Services. The wholesale fuels business was acquired by Colonial Oil Industries, Inc., a subsidiary of Colonial Group, Inc. The electricity business was acquired by Shipley Choice, LLC, a subsidiary of Shipley Energy, Inc.
Lykins Companies, Inc., a highly respected leading distributor of diversified energy solutions, was founded in 1948 by Guy “Bandy” Lykins. The Company’s original business was operating retail service stations, until 1953 when Bandy’s 14-year old son, Don, purchased a fuel oil truck to supply heating oil to customers. Over the years, the Company diversified its operations by adding various business lines such as fuels distribution, lawn accessory sales, restaurants, tire distribution, and many others to its service offerings.
In 1999, Jeff Lykins, current president and third-generation owner, became president of the Company. Jeff, along with vice president & CFO Bob Manning and vice president of Transportation Ron Lykins, made a conscious decision to focus the Company on its core business of supplying customers with energy products. Many of the ancillary business lines were divested, with the proceeds reinvested in the Company’s core business. In addition, the Company established a new business line, electricity supply, in 2014.
In regard to the transactions, Mr. Jeff Lykins commented, “Ron, Bob and I want to thank all of our talented and dedicated employees over the years for building Lykins into one of the leading, diversified energy providers in the industry, as well as one of the largest private employers in Ohio. I also want to acknowledge Matrix, who structured and diligently executed on the sale of the enterprise that maximized shareholder value.”
Matrix provided merger and acquisition advisory services to Lykins, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of all three sale transactions. The transactions were managed by Spencer Cavalier, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group, Stephen Lynch, Director, Martin McElroy, Senior Associate, and Kyle Tipping, Associate.
Mr. Cavalier said, “We are honored to have advised three of the most highly respected entrepreneurial businessmen in the petroleum industry. Over their history together, Jeff, Ron and Bob successfully adapted the Lykins enterprise to changing market dynamics to better serve their customers and fortify strong, recurring financial performance. We wish each of them all the best in their future endeavors.”
Rhys Wilson, Phil Cooper, and Tom Ryan from Nelson Mullins Riley & Scarborough LLP served as legal counsel for Lykins.