CrossAmerica Partners LP has successfully sold its fuels transportation, residential heating oil and tank wagon commercial fuels businesses that were formerly operated by wholly-owned subsidiary, Petroleum Marketers Inc. (PMI) to multiple buyers.
Reliable Tank Line, LLC, a division of Quality Oil Co. LLC, purchased the fuels transportation business. The heating oil and tank wagon commercial fuels business was sold by terminal branch to multiple buyers: Quarles Petroleum Inc.; Davenport Energy Inc.; and Woodfin Heating Inc.
In May of 2014, Lehigh Gas Partners LP, the predecessor of CrossAmerica, purchased PMI, which at the time operated two primary lines of business: convenience stores and petroleum products distribution.
CrossAmerica subsequently decided to divest the fuels transportation, residential heating oil and tank wagon commercial fuels businesses, which consisted of customers, bulk storage plants, operational facilities and fleet assets that served customers throughout the Common-wealth of Virginia.
PMI was incorporated in 1949, and has been supplying and delivering a variety of petroleum products to commercial, dealer, governmental and residential customers for over 60 years.
Matrix Capital Markets Group Inc. provided merger and acquisition advisory services to CrossAmerica, on the above divestitures, which included valuation advisory, marketing of the assets through a customized, confidential, structured sale process, and negotiation of the transaction. The transaction was co-managed by Spencer Cavalier, managing director and Cedric Fortemps, managing director. Andrew LoPresti, associate, also advised on the transaction.
“Matrix’s advice, assistance and professionalism throughout this process has resulted in a positive outcome for all parties,” said David Hrinak, executive vice president and chief operating officer of CrossAmerica. “As always, it was a pleasure working with the folks at Matrix.”
Cavalier and Fortemps commented, “Matrix is very appreciative to continue our advisory relationship with CrossAmerica and its general partner, CST Brands Inc. We are extremely pleased with the results of this process.”
Dennis McCarthy and Marc Albanese of Davison & McCarthy, P.C. served as legal counsel for CrossAmerica.