Matrix Capital Markets Group advised Lykins Companies (trading as Lykins Energy Solutions) on the sale of the company’s bulk fuels, wholesale fuels and electricity divisions. The commercial fuels, heating oil and propane division (collectively, bulk fuels) was acquired by World Fuel Services. The wholesale fuels business was acquired by Colonial Oil Industries, a subsidiary of Colonial Group. The electricity business was acquired by Shipley Choice, a subsidiary of Shipley Energy.
Lykins Companies is a distributor of diversified energy solutions and was founded in 1948 by Guy Lykins. The company’s original business was operating retail service stations until 1953 when Lykins’ 14-year-old son, Don, purchased a fuel oil truck to supply heating oil to customers. Over the years, the company diversified its operations by adding various business lines, such as fuels distribution, lawn accessory sales, restaurants and tire distribution.
In 1999, Jeff Lykins, current president and third-generation owner, became president of the company. Jeff Lykins, along with Bob Manning, vice president and CFO, and Ron Lykins, vice president of transportation, decided to focus the company on its core business of supplying customers with energy products. Many of the ancillary business lines were divested, with the proceeds reinvested in the company’s core business. In addition, the company established a new business line, electricity supply, in 2014.
“Ron, Bob and I want to thank all of our talented and dedicated employees over the years for building Lykins into one of the leading diversified energy providers in the industry, as well as one of the largest private employers in Ohio,” Jeff Lykins said. “I also want to acknowledge Matrix, who structured and diligently executed on the sale of the enterprise that maximized shareholder value.”
Matrix provided merger and acquisition advisory services to Lykins Companies, including delivering valuation advisory, marketing the business through a confidential and structured sale process and negotiating all three sale transactions. The transactions were managed by Spencer Cavalier, co-head of Matrix’s downstream energy and convenience retail investment banking group; Stephen Lynch, director at Matrix; Martin McElroy, senior associate at Matrix; and Kyle Tipping, an associate at Matrix.
“We are honored to have advised three of the most highly respected entrepreneurial businessmen in the petroleum industry,” Cavalier said. “Over their history together, Jeff, Ron and Bob successfully adapted the Lykins enterprise to changing market dynamics to better serve their customers and fortify strong, recurring financial performance. We wish each of them all the best in their future endeavors.”
Rhys Wilson, Phil Cooper and Tom Ryan from Nelson Mullins Riley & Scarborough served as legal counsel for Lykins Companies.