Case Study: Matrix Advises on the Sale of Andretti Petroleum Group to H&S Energy
The Andretti Petroleum Group (“Andretti” or “Company”) was founded in 1997 when racing icons Mario Andretti, Michael Andretti, long-time Andretti family advisor John Caponigro and Texaco executive M.J. Castelo launched a startup Texaco wholesale business in northern California.
Over the next 25 years, M.J. Castelo guided the growth of the Company into one of the largest convenience retail and fuels distribution businesses on the West Coast. Through organic growth and a series of acquisitions, the business grew to nearly 170 convenience retail and fuels distribution assets throughout California, Oregon and Washington.
In 2021, the owners of the Company retained Matrix to perform both a gifting valuation and a strategic market valuation, and in 2023, ultimately decided to exit the industry.
Matrix provided merger and acquisition advisory services to Andretti, which included valuation advisory, marketing of the business through a confidential, structured sale process, and negotiation of the transaction. Due to the mix of assets and size of the transaction, in order to maximize competition from buyers and increase the likely number of offers received, Matrix marketed the Company in two distinct geographic markets.
Our goal was to customize, execute, and complete a confidential sale process that would allow Andretti’s shareholders to realize maximum after-tax value upon the sale of the Company.
Multiple competitive offers were received for the Company, and H&S Energy, LLC (“H&S”) was ultimately selected as the acquirer.
During the process, Matrix also provided buy-side advisory services as Andretti completed the acquisition of Stein Oil, which was deemed likely to be accretive to the shareholders in the sale of the Company.
Matrix assisted in the negotiation of the purchase agreement and coordinated the due diligence and closing process. The transaction with H&S closed in March 2024.
Cedric C. Fortemps, CFA
Co-Head, Downstream Energy & Convenience Retail Investment Banking
(804) 591-2039
www.matrixcmg.com
Richmond Baltimore New York
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 with a total transaction value of more than $16 billion.
Securities offered by MCMG Capital Advisors, Inc., an affiliate of Matrix Capital Markets Group, Inc., Member FINRA & SIPC