Matrix Announces the Successful Sale of Melvin L. Davis Oil Company, Inc. d/b/a Davis Travel Centers
RICHMOND, VA / BALTIMORE, MD – April 12, 2022 – Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Melvin L. Davis Oil Company, Inc. d/b/a Davis Travel Centers (“Davis” or the “Company”) on the sale of its highway travel centers, convenience retail stores, and quick-service restaurants to an affiliate of Petroleum Marketing Group, Inc. (“PMG”). As part of the transaction, Davis and PMG have entered into a transition services agreement.
The Company’s two high-volume, full-service travel centers are located along I-95 and I-85 in South Central Virginia and are part of the AMBEST network of independent truck stops. In addition to its travel centers, Davis also operates two large-format convenience stores under the Company’s Davis Express store brand and numerous branded quick-service restaurants, which include Wendy’s, Popeyes, Little Caesars, Subway, Starbucks, and Dunkin’ Donuts. The travel centers and convenience stores offer Exxon or Mobil branded fuels and the two travel centers also sell unbranded diesel fuels at their high-speed diesel islands.
The Company was founded in 1956 in Sussex, Virginia when Irvin Davis, Sr. and his son, Melvin Davis, Sr. began operating a single restaurant and gasoline filling station in Stony Creek, Virginia. During the 1980’s, Davis expanded into the convenience retail business, eventually operating up to 14 traditional convenience stores. Now under the leadership of Melvin (“Mel”) Davis Jr. and J. Rex Davis, who represent the third generation of the Davis family, the Company has operated in the travel center, convenience retail, restaurant, and fuels businesses for over 65 years.
Matrix provided merger and acquisition advisory services to Davis, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group, Stephen Lynch, CFA, CPA, Director, John Mickelinc, CFA, Associate, and Alex Harper, Analyst.
Rex Davis commented, “Throughout the entire process, the Matrix team provided excellent guidance and advice. Their determined, yet flexible approach and proven methodology allowed for the best outcome for all parties. Simply put, we could not have achieved this without them.”
Mr. Fortemps added, “We very much appreciate the trust that Mel and Rex placed in us to advise them on the sale of the incredible business they’ve worked so hard to build. These facilities and operations are best-in-class, which is how they have developed such a large and loyal commercial driver and passenger vehicle customer base from travelers along the I-95 and I-85 corridors in southern Virginia.”
Stephen Burke, and Beth Hungate-Noland, from Williams Mullen served as legal counsel for Melvin L. Davis Oil Company, Inc.