Matrix Advises Downs Energy on its Sale to Pilot Company
Matrix Capital Markets Group, Inc. has advised Downs Energy and its affiliates on the sale of its cardlock, fleet card, delivered fuels, and lubricants distribution businesses to SC Fuels, a subsidiary of Pilot Travel Centers, LLC. Headquartered in Corona, California, Downs Energy is a leading petroleum marketer that operates six high-performing cardlocks with a large fleet card customer base and a delivered fuels and lubricants distribution segment servicing commercial and municipal customers throughout Southern California.
The Company was founded in 1940 when Elvin Downs became a wholesale distributor for Standard Oil Co. in Corona, California. In 1975, Elvin’s son, John, and his wife Catherine, assumed leadership of the Company and introduced a “key lock” system for around-the-clock fuel sales at unattended sites, a precursor to today’s cardlock facilities. During the 1980s, their children, Mike and Sherry, joined the company, helping to cement the family legacy. In 1989, Downs Energy became a member of the then newly established nationwide Commercial Fueling Network (CFN), beginning a long-standing partnership that continues to this day.
Mike Downs became President of the Company in 1992, and he and Sherry continued to expand the business by opening three additional cardlock sites in the 1990s and acquired and built two additional cardlocks over the last ten years. Under their leadership, the Company also focused on further developing its delivered fuels and lubricants distribution businesses, which deliver fuels along with Phillips 66 and Petro-Canada branded lubricants across Southern California.
Matrix provided merger and acquisition advisory services to Downs Energy, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale of the Company and lease of the facilities to Pilot Company. The transaction was managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; David Corbett, CFA, Director; and Michael Corliss, Analyst.
Mr. Fortemps commented, “Over three generations, the Downs family has built one of the leading cardlock, fleet card and fuels and lubricants distribution businesses in the industry by focusing on continuous investment in their state-of-the-art cardlock facilities and best-in-class customer service. We were honored to have advised them on the sale of the Company.”
Gary Fitzpatrick and Sam Reep of Brown & Streza, LLP served as legal counsel for the Company. Matthew Jann of Glaser Weil Fink Howard Jordan & Shapiro, LLP served as legal counsel for Pilot Company.
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, our 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. Advisory services include company sales, recapitalizations, capital raises of debt and equity, corporate carve-outs, special situations, management buyouts, corporate valuations, and fairness opinions.
Matrix’s industry-focused, dedicated sector advisory groups support clients in the automotive aftermarket, downstream energy & convenience retail, and outdoor recreation & marine markets. Broader sector advisory groups assist clients across business services, consumer, diversified industrials, restaurants, and transportation & logistics.
For additional information or to contact team members, visit www.matrixcmg.com