Case Study:
Matrix Announces the Successful Sale of IPC (USA), Inc.
Situation:
- IPC USA, Inc. (“IPC” or “the Company”) was a wholly-owned subsidiary of Itochu Corporation (“Itochu”), a Japanese based global 500 conglomerate, that annually distributed approximately one billion gallons of unbranded petroleum products, primarily gasoline and diesel fuel, to a large, diverse customer base across 31 states.
- IPC’s customers purchased fuel on a delivered, rack or pipeline basis, and included high volume retailers, independent petroleum marketers, governmental agencies, truck stops, construction companies, auto rental agencies, and other commercial companies.
- IPC, formed in 2004 as a joint venture between Itochu and Chemoil, was Itochu’s only American downstream petroleum In 2011, Itochu bought Chemoil’s interest in the joint venture, and formed the wholly owned subsidiary that became IPC (Itochu Petroleum Company).
Objective:
Itochu decided to explore a sale process in order to reallocate capital to other portfolio companies. Matrix was engaged to perform a valuation, as well as customize, execute, and complete a confidential sale process that would altlow Itochu to realize maximum after-tax value upon the sale of IPC and expeditiously wind down its US operations.
Solution:
Matrix provided merger and acquisition advisory services to IPC, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction. Multiple competitive offers were received, and Truman Arnold Companies (“TAC”) was ultimately selected as the acquirer. Matrix assisted in the negotiation of the purchase agreement and coordinated the due diligence and closing process. The transaction closed in October 2019.
About Matrix’s Downstream Energy & Convenience Retail Group:
Matrix’s Downstream Energy & Convenience Retail 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 transportation & logistics, terminals and bulk plants, car washes, food service and specialty retail. Team 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 restructurings, corporate valuations, and strategic planning engagements. Since its inception in 1997, this dedicated group has successfully completed over 230 engagements in these sectors with a total transaction value of more than $11.5 billion.
John J. Underwood
Managing Director & Principal
667.217.3324
www.matrixcmg.com
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