Matrix Announces the Successful Divestment of 50 CEFCO Petroleum Marketing & Convenience Retail Stores
Matrix Capital Markets Group, Inc. (“Matrix”), a leading, independent investment bank, announces that it has advised Fikes Wholesale, Inc., d/b/a CEFCO Convenience Stores, and its affiliates (“CEFCO” or the “Company”) on the divestment of 50 of the Company’s company-operated petroleum marketing and convenience retail stores located in Texas, Louisiana, Mississippi, Arkansas, and Alabama. BreakTime Corner Market, L.L.C. and its affiliates (“BreakTime”) acquired 48 of the Company’s stores and Refuel Operating Company, LLC d/b/a Refuel acquired two stores in Mississippi.
CEFCO has been serving customers’ convenience needs since its first store opened in 1979. Through organic growth and acquisitions, the Company has expanded to over 250 locations across six states (Texas, Louisiana, Arkansas, Alabama, Mississippi, and Florida). The divestment of these 50 locations enables CEFCO to enhance its capital allocation and focus investment in new stores and remodeling of existing convenience stores.
In addition to the more than 200 petroleum marketing and convenience retail locations that the Company will continue to operate, Fikes Wholesale, Inc. owns and operates a wholesale fuels business (Fikes Fuels), a fuels transportation business (Group Petroleum Services, Inc.), an ATM solutions provider (CORD Financial Services), and an ATM processor (Digital Network Solutions).
Matrix provided merger and acquisition advisory services to CEFCO, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; John Underwood, Managing Director; Martin McElroy Jr., CFA, Senior Associate; and James Mickelinc, CPA, Senior Analyst.
Mr. Raymond Smith, President, Fikes Wholesale, Inc., commented, “We appreciate Matrix’s thorough and professional representation throughout this transaction. With plans to open twenty new stores this year, CEFCO will continue to build, open and operate stores that fit its vision of being a first-tier convenience-driven retailer with engaged employees who sell great food and provide great service in an exceptionally clean environment.”
Mr. Cavalier added, “Fikes is one of the best managed and disciplined convenience retailers in the U.S. We are honored to have worked with their executive management team to divest these stores in order for them to redeploy capital to continue growth in their target markets and preferred store prototypes.”
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 270 engagements with a total transaction value of more than $13 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 an additional office in Baltimore, MD. 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 http://www.matrixcmg.com.