Market Convenience Retail, WetGo Car Wash, & Wholesale Motor Fuels Distribution Businesses
Matrix Capital Markets Group, Inc. has advised Giant Eagle, Inc. and its affiliates on the sale of its GetGo Café + Market convenience retail, WetGo Car Wash, and wholesale motor fuels distribution businesses to two separate buyers. Collectively, these two transactions represent a complete exit for the Company from these operations, allowing Giant Eagle to focus on its core supermarket and pharmacy businesses.
As per previous announcements, Giant Eagle has sold its portfolio of nearly 270 GetGo Café + Market convenience stores and WetGo car washes located across Pennsylvania, Maryland, Ohio, West Virginia, and Indiana to Alimentation Couche-Tard, Inc., the parent company of Circle K.
Giant Eagle opened the first GetGo location in 2003, and over the next two decades grew the banner into an innovative, food-first convenience store experience. As part of the GetGo transaction, Giant Eagle and Couche-Tard have agreed to maintain and partner on the Company’s widely popular myPerks loyalty program.
In a separate transaction, Giant Eagle has also sold its wholesale motor fuels distribution business to Cary Oil Company, Inc. The Company’s wholesale motor fuels business distributes BP, Amoco, Phillips 66, Conoco, and Marathon branded motor fuels to more than 80 contract dealer supply accounts in Indiana, Illinois, and Kentucky. Giant Eagle began distributing branded wholesale motor fuels in December 2018 when it acquired Ricker Oil Company, Inc., and given the legacy of this business, the majority of the Company’s dealer supply accounts are concentrated in and around the greater Indianapolis, Indiana metropolitan area.
Matrix provided merger and acquisition advisory services to Giant Eagle, which included valuation advisory, conducting a confidential, structured sale process, and negotiation of the transactions. The transactions were managed by Stephen Lynch, CPA, CFA, Managing Director; Spencer Cavalier, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Kyle Tipping, CFA, Vice President; and James Mickelinc, CPA, Senior Associate.
David Burnworth, CFO of Giant Eagle, commented, “This was a highly complex transaction, and the team from Matrix proved to be an exceptional advisor every step of the way. Their ability to manage a dynamic and fluid process while providing thoughtful, strategic guidance was key to achieving a successful result for Giant Eagle.”
“Over the years, it has been exciting to not only watch Giant Eagle grow its GetGo, WetGo, and wholesale motor fuels distribution businesses but to also be part of the story by advising Giant Eagle on multiple occasions,” said Mr. Lynch. “We have always admired Giant Eagle’s incredible operating prowess across all of its business lines and are very grateful to have been given the opportunity to advise them on this series of transactions.”
Weil, Gotshal & Manges LLP and Winthrop & Weinstine, P.A. served as legal counsel for Giant Eagle with respect to the transactions with Couche-Tard and Cary Oil, respectively.
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, car washes and quick service restaurants. 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, the firm’s Downstream Energy & Convenience Retail Investment Banking Group has successfully completed over 300 engagements.
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.
The firm’s industry focused, dedicated sector advisory groups serve clients in the automotive aftermarket, downstream energy & convenience retail, healthcare, and outdoor recreation & marine markets. Its broad sector advisory groups serve clients in a wide range of industries, including business services, consumer, diversified industrials, restaurants, and transportation & logistics. For additional information, visit www.matrixcmg.com.