Service Type: M&A
Client: Johnson Oil Company
Client Description: Commercial fuels and lubricants distributor, with assets including bulk plants, trucking operations, and a repackaging facility.
- The founding shareholder passed away at the age of 83, leaving the entire Company to his widow. Prior to passing, numerous assets were conveyed to his children and grandchildren as part of advanced estate planning. The founder also owned, outside of the business, multiple cattle ranches and oil field assets.
- Following a divestiture of its Retail Convenience and Dealer Fuel Supply businesses, the Company sought to finalize its ongoing M&A process through the sale of its Commercial Fuels & Lubricants business.
- The Company’s earlier divestiture left the existing business with disproportionate overhead expenses, as its corporate infrastructure was originally designed to sustain a much larger company.
- Corner Capital was tasked with executing a swift divestiture of the remaining business in order to prevent a loss of value to the Company.
- The Commercial Fuels & Lubricants business was marketed to potential strategic and financial buyers within Corner Capital’s industry network, with a focus on seeking a buyer capable of closing within the required timeline.
- F.S. Holdings, an affiliate of Allied Sales Company, was selected as the acquirer of the Company’s Commercial Fuels & Lubricants business.
- As a strategic buyer, F.S. Holdings had the capacity to integrate the Company’s remaining asset class into its corporate structure, maximizing value for both parties.
- The Company’s management team was retained as part of the acquisition.
- Corner Capital executed on the final phase of its original M&A strategy, delivering on the Johnson family’s request for liquidation while optimizing the Company’s value.