Case Study: Matrix Announces the Successful Sale of
New West Oil Company, L.L.C.
Situation:
- New West Oil Company, LLC (“New West” or the “Company”) was founded in Glendale, Arizona, by Tim Genrich (CEO), Ron Reeves (President), Tom Turley (VP Commercial Sales), and Terry Cooney (CFO), all former employees of Canyon State Oil
- The Company began as a Valvoline distributor in 2011 and over the years developed and grew a strong proprietary brand, Ultra In 2013, the Company created New West Environmental, a division that collects used oil from customers and resells it as burner fuel to asphalt and concrete companies. The addition of New West Environmental allowed the Company to offer its lubricant customers a disposal solution for used oil, filters, and coolant, without the need for a separate vendor.
- In 2016, New West expanded into Las Vegas with the Valvoline brand and in 2018 also became one of the largest Petro-Canada distributors in the United
- Over the course of just nine years, New West grew from a single brand start-up into a leading multi-brand lubricant, commercial fuel, and environmental service provider in the
- The owners contacted Matrix to better understand the potential value of the business that could be achieved from a possible After an in-depth financial analysis of the company, Matrix was able to present the most probable range of value and recommended sale process that would maximize the value for the owners. As a result, Matrix was retained to advise on the sale process.
- Ultimately, the Company decided to pursue a sale that allowed it to retain control of its real estate facilities through a subsequent lease to the buyer post-closing.
Objective:
- Matrix’s objective was to custom design, execute, and complete a confidential sale process that would allow New West’s shareholders to realize maximum after-tax value for the sale of the In addition, the process needed to be customized in order to achieve the owners’ preference to maintain control of its real estate, as well as secure favorable post-transaction employment agreements for the Company’s owners and its employees.
Solution:
- Matrix provided merger and acquisition advisory services to New West, which included valuation advisory, marketing of the business through a confidential, structured sale process, negotiation of the transaction and leasing of the real estate
- In addition to the design and execution of the sale process, Matrix assisted in the negotiation of the purchase agreement, coordinated the due diligence, structured proposed facility lease terms, and managed the closing process.
- Multiple competitive offers were received, and RelaDyne was ultimately selected as the acquirer. The transaction closed in December 2020.
About Matrix’s Downstream Energy & Convenience Retail Investment Banking 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, special situations, 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.
For more information,
contact Cedric C. Fortemps
at cfortemps@matrixcmg.com
or 804.591.2039