Mutual Oil Co. Sells 19 Gas Stations

The wholesale assets were purchased by a number of buyers, including Alliance Energy LLC, regional jobbers and individual store operators.

Matrix Capital Markets Group Inc. has announced the successful sale of 19 gas station and convenience store wholesale assets for Mutual Oil Co. Inc.

The wholesale assets have been sold to multiple buyers, including Alliance Energy LLC, a wholly-owned subsidiary of Global Partners LP and various regional jobbers and individual store operators. Mutual Oil conveyed fee simple interests in 17 of the sites and leasehold interests in two of the sites. The Mutual Oil has entered into long-term contracts to supply fuel to many of the buyers, primarily under its proprietary Mutual fuel brand.

Founded in 1937, Mutual Oil has grown to become one of the largest and most diversified privately-held petroleum distributors in the U.S. and enjoys a reputation of providing high quality products, service and logistics to its customers. In 2003, the company exited the directly operated retail business to focus solely on the wholesale distribution and transportation of fuels.

As part of this conversion, Mutual Oil leased its retail assets to Getty Petroleum Marketing Group Inc. (GPMI) in January 2003. On Dec. 5, 2011, GPMI filed for Chapter 11 bankruptcy reorganization, and on March 27, 2012 GPMI rejected the master lease that contained Mutual Oil ‘s sites. Since then, Mutual Oil has leased the sites to individual licensees and rebranded and supplied fuel to all of the sites primarily under the Mutual Oil brand.

Mutual Oil is owned and operated by Ed Rachins and Steve Shaer. The primary reason for the divestments is for Mutual Oil to focus exclusively on its wholesale business as it is no longer in the business of managing retail assets.

“We have been very pleased with the professional and thorough manner in which Matrix has managed the entire process. They have been a pleasure to work with,” said Shaer.

Matrix provided merger and acquisition advisory services to Mutual Oil, which included valuation advisory, transaction structuring, marketing and negotiating.

The transaction was managed by Tom Kelso, managing director and head of the Energy and Multi-Site Retail Group; Spencer Cavalier, director; Sean Dooley, associate; and, Andrew LoPresti, senior analyst.

“Our relationship with Mutual began back in 2006, and it has been our privilege to serve as their financial advisor over the years,” said Cavalier. “We were delighted to have the opportunity to work closely with the Mutual team to monetize the value of the assets that Steve and Ed have held for many years.”

Phillip Lapatin of Holland & Knight served as legal counsel for Mutual Oil.

 

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