Matrix Capital Markets Group, Inc., a leading, independent investment bank, announces that it has advised Penta Operating, LLC d/b/a Jack’s Convenience Stores on the sale of eight petroleum marketing and convenience retail stores and one Jack’s Lube & Wash oil change and car wash location to an affiliate of Monfort Companies. The Stores are located in the west Texas markets of Midland, San Angelo and Abilene. Four stores offer Exxon-branded fuel, while four sell Jack’s branded fuel.
Under various predecessor entities, but through continued related family ownership, Penta Operating has operated retail convenience stores with fuel in west Texas since the early 1970’s, when founder Frank Ligon founded the Frank Ligon Oil Company. In 2001, Ligon’s daughter, Monica Wolfe, and her husband, Tyler Wolfe, purchased the business from Ligon. In 2014, Penta Operating, LLC was formed and four former Town & Country Food Stores’ executives, consisting of Alvin New, Devin Bates, Randy Brooks and Robert Eggleston, invested in the Company alongside the Wolfes. The portfolio of Stores is a combination of assets acquired from ExxonMobil and new-to-industry locations, with four of the Stores having been constructed since 2013.
Since its inception in 2008, the Jack’s brand has become well-known in the region and has developed a loyal customer base in the markets the Company serves. The Company prides itself on being a best-in-class operator that offers a unique mix of convenience store staples and proprietary Jack’s-branded products tailored to local consumers. The Stores are comprised of high-quality, larger format retail stores and five of the locations feature car washes, including two tunnel washes. Two locations have proprietary “Jack’s Grub N Stuff” foodservice offerings including breakfast burritos and biscuits, sandwiches, pizza, and freshly prepared salads. Additionally, tenant-operated foodservice offerings are featured at two sites, consisting of Which Wich® Superior Sandwiches and Chuck & Patty’s, a local fast casual restaurant concept offering hamburgers, frozen treats and beer on tap.
Matrix provided merger and acquisition advisory services to Jack’s, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; David Corbett, CFA, Director, John Mickelinc, CFA, Associate and Alex Harper, Analyst.
Tyler Wolfe, Co-Operating Partner of the Company commented, “We made a great decision when we selected Matrix to be our sell-side advisor for this transaction. This was an emotional transaction for our entire team and Matrix was by our side guiding us the entire way. Cedric, David and the whole Matrix team are second to none for their professionalism, industry knowledge, attention to detail and their tireless work ethic. We have to also commend Matrix for connecting us with Monfort Companies, who is a great fit for all of our outstanding transferring team members and will be a great steward to carry on the legacy of the Jack’s brand as they continue to expand.”
Fortemps commented, “Tyler, Robert and the rest of the Jack’s team should be very proud of the quality and consistency of the facilities and service offerings that the Company provides its customers. We very much appreciate the trust Penta’s owners placed in us to advise them on the sale of the incredible business they built and are happy for them on the successful outcome.”
Greg Samuel, Brent Beckert and Rachael Williams from Haynes & Boone, LLP served as legal counsel for Penta Operating, LLC.
