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.”
About Matrix’s Downstream Energy & Convenience Retail Investment Banking Group
Matrix’s Downstream Energy & Convenience Retail Investment Banking 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 retailing, petroleum marketing & distribution, propane distribution, heating oil distribution, lubricants distribution, petroleum logistics, terminals and car washes. Group 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 valuations, special situations and strategic planning engagements. Since 1997, our Downstream Energy & Convenience Retail Investment Banking Group has successfully completed over 250 engagements with a total transaction value of more than $12 billion.
About Matrix Capital Markets Group, Inc.
Founded in 1988, Matrix Capital Markets Group, Inc. is an independent, advisory focused, privately-held investment bank headquartered in Richmond, VA, with additional offices in Baltimore, MD and Chicago, IL. Matrix provides merger & acquisition and financial advisory services for privately-held, private-equity owned, not-for-profit and publicly traded companies. Matrix’s advisory services include company sales, recapitalizations, capital raises of debt & equity, corporate carve outs, special situations, management buyouts, corporate valuations and fairness opinions. Matrix serves clients in a wide range of industries, including automotive aftermarket, building products, business services, consumer products, convenience retail, downstream energy, healthcare and industrial products. For additional information or to contact our team members, please visit www.matrixcmg.com.