Matrix Capital Markets Group advised Toms Sierra Company on the sale of 13 of the company’s 16 petroleum marketing and convenience retail stores to an undisclosed buyer.
Toms Sierra Company’s stores are located outside Sacramento, CA, in the surrounding foothills of the Sierra Nevada Mountain range and operate under the Sierra Express brand name. The stores sell 76 branded and Sierra Energy branded fuels. As part of the transaction, an institutional real estate investment trust acquired Toms Sierra Company’s fee simple interest in seven of the properties and entered into lease agreements with the buyer.
Toms Sierra Company was founded in 1959. Over the subsequent decades, prior to being acquired by its current majority owner in 1998, the company grew to a nearly 30 store chain with additional wholesale fuels distribution, fuels transportation and automotive services business segments. The company divested its wholesale fuels distribution and fuels transportation businesses in 2008 and subsequently optimized its convenience store division by selling under-performing assets.
The company is led by Brad Barnet as president. Barnett has worked for the company for nearly 20 years.
“It’s been a challenging and complex effort to sell the stores during a pandemic,” Barnett said. “We are grateful for the efforts of Cedric Fortemps and the Matrix team. I can’t imagine such an undertaking without their expertise and assistance. We look forward to watching the transition to the buyer with our foothill locations.”
Matrix Capital Martkers Group provided merger and acquisition advisory services to Toms Sierra Company, including valuation advisory; marketing the business through a confidential, structured sale process; and negotiation of the sale and lease transactions. Cedric Fortemps, co-head of Matrix Capital Markets Group’s downstream energy and convenience retail investment banking group, managed the transaction along with Stephen Lynch, director of Matrix Capital Markets Group, and Kyle Tipping, an associate at Matrix Capital Markets Group.
“We sincerely appreciate Brad and the company’s board entrusting us as their advisor on this transaction,” Fortemps said. “We greatly enjoyed working with Brad and his team and are pleased that the stores are being acquired by a reputable and experienced operator that will continue to provide exceptional service to Sierra’s loyal customer base.”
Fred Whitaker and Ashley Bolduc of Cummins & White served as legal counsel for Toms Sierra Company.
