Case Study: Matrix Announces Jacksons Food Stores’ Successful Acquisition of 62 Speedway & 7-Eleven Stores
Situation:
- Pursuant to 7‐Eleven’s acquisition of Speedway from Marathon Petroleum , the Federal Trade Commission (“FTC”) required 7‐Eleven to divest 293 locations.
- Jacksons Food Stores, Inc. (“Jacksons” or the “Company”) owns, operates, and supplies more than 1,340 stores across nine western states. The Company is vertically integrated, with fuel supplied by Jacksons Energy, full‐ line grocery and supplies distributed through Capitol Distributing and fresh food products supplied through Capitol Kitchen.
- The Company was interested in the western package of the Speedway divestiture, which included 62 Speedway and 7‐ Eleven branded convenience stores in California, Arizona, and Nevada (“the Portfolio”).
Objective:
- Jacksons approached Matrix during the fourth quarter of 2020 requesting assistance with the potential acquisition of the Portfolio.
- Matrix was engaged to advise Jacksons on the valuation of the Portfolio, assist in the development of operating and financial assumptions, structure and negotiate the terms of the Company’s offer and review and advise on financing alternatives.
Solution:
- Matrix developed a comprehensive financial model to evaluate the acquisition and analyze the projected postacquisition performance of the Portfolio. The financial model’s many variables allowed the Company to easily perform sensitivity analyses on unique scenarios for the Portfolio and to estimate returns on equity using different operating and financial assumptions.
- Matrix assisted Jacksons in preparing its formal offers for the Portfolio and in preparing materials regarding the acquisition for the Federal Trade Matrix also advised on the terms of financing utilized to consummate the transaction.
- The successful acquisition was part of a continued focus on Jacksons’ growth and expansion into additional markets across the Western U.S. The transaction resulted in the Company gaining 58 stores in attractive California markets, where it previously had little to no presence. Jacksons closed on the purchase of the final store in the Portfolio on October 4, 2021.
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 its inception in 1997, this dedicated group has successfully completed over 250 engagements in these sectors with a total transaction value of more than $12 billion.
For more information,
contact Cedric C. Fortemps, CFA
at cfortemps@matrixcmg.com
or 804.591.2039