Matrix Capital Markets Group Inc., an independent investment bank, advised Toms Sierra Co. Inc. on the sale of 13 of the company’s 16 petroleum marketing and convenience retail stores to an undisclosed buyer.
The company’s stores are located outside Sacramento, California, in the surrounding foothills of the Sierra Nevada mountain range, and operate under the Sierra Express brand name. The stores sell 76 branded and Sierra Energy branded fuels. As part of the transaction, an institutional real estate investment trust acquired Sierra’s fee simple interest in seven of the properties and entered into lease agreements with the buyer.
Toms Sierra Co. Inc. was founded in 1959. Before being acquired by the current majority owner in 1998, the company grew to a nearly 30 store chain with additional wholesale fuels distribution, fuels transportation and automotive services business segments. The company divested its wholesale fuels distribution and fuels transportation businesses in 2008 and subsequently optimized its convenience store division by selling under-performing assets.
Matrix provided merger and acquisition advisory services to Sierra, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale and lease transactions. The transaction was managed by Cedric Fortemps, co-head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; director Stephen Lynch and associate Kyle Tipping.
Matrix’s Downstream Energy & Convenience Retail Investment Banking Group provides transactional advisory services to companies in the downstream energy and multisite retail sectors including convenience retailing, petroleum marketing and distribution, propane distribution, heating oil distribution, lubricants distribution, petroleum logistics, terminals and car washes. Since 1997, the group has completed more than 250 engagements with a total transaction value of more than $12 billion.