Service Type: M&A
Client: Mickey’s Convenience Foods (“Mickey’s”)
Client Description: Convenience retailer and Chevron distributor, operating 15 Mickey’s convenience stores with Chevron branded gasoline as well as 2 standalone car washes and 3 laundromats. Founded in 1947, Mickey’s served the Killeen and Fort Hood markets through its excellent service, stellar local reputation, and popular grab-and-go food service.
- The Client sought retirement from the industry and requested Corner Capital to perform initial valuation services, and consequently proceeded to a structured sale process.
- Determine a Fair Market Valuation for Mickey’s and identify key strategic acquirers for the Company’s consideration to conduct a broad structured sale auction process with Corner Capital as the exclusive advisor.
- The Company and Corner Capital were concerned about Chevron’s execution and assignment of its Right of First Refusal (ROFR) embedded in Chevron’s Branded Marketer Agreement (BMA).
- Corner Capital executed a structured sale process to the most strategically acquisitive target groups, both national and local. Corner Capital facilitated the transaction from initial marketing, diligence, negotiating the definitive agreements to closing.
- All assets, operations, and contracts of the Company were marketed in the sale.
- The buyer, also a Chevron distributor, was selected after intense competition to secure the transaction.
- Despite the selection of the winning bidder and an expired Chevron BMA, Chevron promptly exercised what it believed to be a valid ROFR. The Company ultimately agreed to Chevron’s exercise and assignment to a third-party purchaser of its choice.
- Corner Capital advised the Company through this challenging process and ultimately consummated the transaction to the satisfaction of Mickey’s.