RICHMOND, VA, March 24, 2025 – Matrix Capital Markets Group, Inc. announces the successful closing on the sale of the home heat and commercial fuels division of Cato, Inc. (“Cato” or the “Company”) to an affiliate of Star Group, L.P. (NYSE: SGU). Based in Salisbury, Maryland, Cato is a leading supplier of retail propane, heating oil, and commercial refined fuels to a customer base of over 5,000 residential and commercial accounts throughout Maryland, Delaware, and Virginia.
The Company was founded in 1960 by Elliot “Buck” Cato and provided refined fuels distribution service to local families, businesses, and farms. Throughout several decades of growth led by Elliot’s son-in-law, Michael Abercrombie, and subsequently Michael (Mike) Abercrombie, Jr., the Company expanded into retail convenience stores, wholesale fuels distribution, propane, and QSRs. Cato has since grown to become one of the Delmarva Peninsula’s largest petroleum marketers.
Matrix provided merger and acquisition advisory services to Cato, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the transaction. The transaction was managed by Sean Dooley, CFA, ASA, Managing Director; Spencer Cavalier, CFA, ASA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Nate Wah, CPA, Senior Associate; and Reilly Erhardt, CPA, Senior Analyst.
Mike Abercrombie, Jr., the Company’s President & CEO commented, “While divesting of the home heat side of our business was a difficult decision, the change will allow Cato to concentrate and continue to grow our retail and wholesale company. The Matrix team was fantastic to work with from the beginning to the end of the transaction.”
Anthony Silecchia Jr., Vice President of Star Group, L.P, stated, “We are thrilled to welcome Cato’s home heat and commercial fuels’ customers and employees to the Star Group family. This addition presents an excellent opportunity for us to increase our presence and strengthen our position as a leader in providing the best energy, heating, and home services to residential and commercial customers throughout Delaware, Maryland, and Virginia.”
Garrett Sheller, of J. Garrett Sheller, LLC served as legal counsel to the Company.
