Case Study: Angus Hines - Exclusive Sale
Situation
- Angus I. Hines, Inc. operated a 48-store petroleum marketing and convenience store chain located primarily in the western and Tidewater regions of Virginia. The chain had sales of over $175 million in 2004.
Objective
- Through the sale of the Company's retail stores, the owners were seeking to monetize their ownership in the Company and retire.
Solution
- Matrix was engaged as the investment banker after presenting a comprehensive marketing plan that included a valuation of the stores based on various marketing strategies that could be used to sell the stores.
- The decision was made to run an auction process that allowed bidders to purchase stores in geographic groups or individual stores.
- The marketing process resulted in over 400 bidders signing confidentiality agreements. Over 200 asset purchase agreements were submitted by more than 60 various bidders. The seller accepted a 23-store offer submitted by The Pantry, Inc. (NASDAQ: PTRY) and accepted offers from 14 other buyers for the remaining stores.
- The auction process resulted in executed asset purchase agreements that will yield sale proceeds that will far exceed the seller's expectations and Matrix's initial valuation range by over 50%.
