Kolkhorst Petroleum, Inc.

The Trigger:

• The Company received a buyout offer from a large competitor, and the Company was unsure whether the value represented a competitive market offer. For family and competitive reasons, the Company decided to investigate its market value and a potential structured sale.

The Project:

• The Company was founded in 1982 and began as a wholesaler of gasoline, diesel, oil, and grease products for agricultural and industrial customers. The Company expanded to convenience retail in 1992, eventually leading to the founding of Rattlers convenience stores in 2004.
• The Company engaged Corner Capital Advisors to provide a Fair Market Valuation of its retail and dealer wholesale business, and ultimately proceeded with a structured sale.

The Solution:

• Corner Capital provided a structure for the Company to retain its commercial fueling and other businesses, while marketing the retail and dealer business segments. Additionally, the Company retained the operations, but not the real estate, related to its franchise restaurant chains co-located on a number of its C-store properties.
• Corner Capital conducted a structured sale process to a discrete target group, to ensure confidentiality and expedite the timeline to closing.

The Result:

• The Company’s retail and dealer wholesale operations were successfully marketed and sold to a single buyer.
• Sunoco LP was selected as the sole-purchaser, and will reimage all Rattlers stores to the Stripes brand.
• The Company was able to yield a sale valuation approximately 35% higher than the original offer, while retaining its QSR operations and commercial fueling (bobtail) business.