RICHMOND, VA – September 22, 2015 – Matrix Capital Markets Group’s Downstream Energy & Retail team has successfully completed three sell-side advisory assignments in the month of August, bringing the total of firm-wide transactions to seventeen so far for this year.
Matrix provided merger and acquisition advisory services, which included valuation advisory, marketing of the Companies through a customized, confidential, structured sale process, and negotiation of the transaction for the following clients:
• Thoroughbred Energy, LLC’s and its related entities’ (“Thoroughbred” or the “Company”) petroleum marketing and convenience store assets were sold to an undisclosed buyer.
Thoroughbred is based in Lexington, Kentucky with operations clustered around the greater Lexington area and in southern Kentucky along Interstate 75. The portfolio of assets includes thirty-two (32) company operated convenience stores, two (2) dealer operated convenience stores and their related fuel supply contracts, and wholesale fuel supply contracts for another eleven (11) dealer locations. Thoroughbred’s high quality convenience stores averaged 3,000 square feet and offered a wide variety of convenience merchandise and motor fuels at all of the locations. All of the stores are Shell branded.
The transaction was co-managed by Cedric Fortemps, Managing Director and Vance Saunders, Director. Thomas Kelso, Managing Director and Head of Matrix’s Downstream Energy & Retail Group, also advised on the transaction.
• Tedeschi Food Shops, Inc. and related real estate entities (collectively “Tedeschi” or “Company”) were sold to 7-Eleven, Inc.
Headquartered in Rockland, Massachusetts, Tedeschi is a leading convenience retailing and foodservice company located in the New England area, with stores in Massachusetts and New Hampshire. The convenience store chain is comprised of 181 stores. Tedeschi directly operates 104 corporate stores and is a franchisor of 77 stores. The stores offer a full assortment of traditional convenience store merchandise, private label Tedeschi Select products, proprietary Tedeschi Fresh Foods made to order on-site and delivered from its own commissary, as well as beer, wine and liquor in select locations.
The transaction was co-managed by Thomas Kelso, Managing Director and Head of the Downstream Energy & Retail Group and Spencer Cavalier, Managing Director. Sean Dooley, Senior Associate and Andrew LoPresti, Associate also advised on the transaction.
• GOGAS Corporation’s (“GOGAS” or the “Company”) assets were sold to Quality Oil Company, LLC (“Quality Oil”).
Prior to the sale, Wilmington, NC based GOGAS directly operated twenty (20) high volume retail motor fuel outlets in southeastern North Carolina with total annual fuel volumes of over 53 million gallons. Nineteen (19) of the sites were owned fee simple with the remaining site leased from a third party. The GOGAS portfolio consists of large, well maintained fueling facilities with modern equipment designed to maximize fuel traffic. Each site features a kiosk style building for accepting fuel payments and selling top-tier cigarettes at the lowest prices in their markets. As part of the transaction, Quality Oil has also acquired the GOGAS brand, which is very well respected and a primary reason for the Company’s loyal customer base. All of the Company’s eligible store employees and field staff were retained by Quality Oil.
GOGAS is a wholly owned subsidiary of K. E. Austin Corporation, a private company founded by Kit and Deborah Austin in 1976. The Company started with two stores and has grown over the years through acquisitions of individual sites and building new-to-industry gas stations. Kit Austin, the Company’s President, continued to manage day-to-day operations up until the closing of the transaction. The sale represents a complete exit for him from the motor fuels business.
The transaction was co-managed by Cedric Fortemps, Managing Director and Vance Saunders, Director. Kyle Profilet, Analyst, also advised on the transaction.