Case Study:

Delek U.S. Holdings, Inc. - Exclusive Sale/Divestiture

Situation

• Delek U.S. Holdings (NYSE: DK) contacted Matrix to pursue a sale of its Virginia division as it had decided that the division was no longer a strategic fit to its core operations.

Objective

• Based on the diversity of the asset strength, format, and condition, we advised Delek to proceed with a broad sale process that allowed buyers to submit offers on all of the stores, groups of stores, or individual stores.

Solution

• Matrix utilized our proprietary database to contact over 2,500 prospective buyers.  As a result of our marketing effort, Matrix collected approximately 200 Confidentiality Agreements from prospective buyers that included sole-proprietor operators, real estate developers, local jobbers, and regional jobbers.
• We diligently contacted the prospective buyers that had submitted CA’s throughout the marketing process and collected Asset Purchase Agreements from over 30 different buyers.
• Delek accepted offers on 10 stores from WilcoHess, LLC and offers on 19 other stores from 12 other buyers for values that exceeded Matrix’s optimistic valuation expectations.
• These successful closings at valuation levels above expectations occurred during the height of the economic and credit crisis.