Case Study: Matrix Announces the Successful Sale of Wadsworth Oil Company of Clanton, Inc.
Situation:
- Wadsworth Oil Company of Clanton, Inc. (“Wadsworth” or the “Company”) was founded in Tuskegee, AL, by William (Tamp) Wadsworth in the late 1920’s as a PAN-AM fuel wholesaler. Jim Wadsworth, Tamp’s son, joined the family business in 1972 after graduating from Auburn University.
- In 1977, the Company purchased a small Amoco distributor in Clanton, AL that became Wadsworth Oil Company of Clanton, Inc. In 1979, Wadsworth built its first retail location in Clanton, AL and established its corporate headquarters.
- Throughout the 1980s and 1990s, Jim led the Company to expand from being primarily a wholesale supplier to a convenience retailer after building six additional retail locations. Throughout the 2000s, the Company continued to build and acquire new stores, while continuously reinvesting in its older stores through remodeling and equipment upgrades.
- The Company owned and operated “The Store” branded convenience stores and truck stops throughout central Alabama.
- Jim ultimately decided to exit the retail convenience store and petroleum marketing business to retire and diversify the family’s wealth. Matrix was engaged to perform a valuation of the Company and advise on the sale process.
Objective:
Our objective was to customize, execute, and complete a confidential sale process that would provide maximum after- tax value upon the sale of Wadsworth.
Solution:
- Matrix provided merger and acquisition advisory services to Wadsworth, which included valuation advisory, marketing of the business through a confidential, structured sale process, advising the client and negotiating the transaction. As a result of the sale process, multiple competitive offers were received, and Circle K Stores Inc. was ultimately selected as the acquirer.
- Matrix assisted in the negotiation of the purchase agreement and coordination of the due diligence and closing process. The transaction closed in August 2020.
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 230 engagements with a total transaction value of more than $11.5 billion.
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