Service Type: Strategy Services, Valuation Services, M&A
Client: The McPherson Companies, Inc
Client Description: Founded in Oneonta, Alabama in 1971, The McPherson Companies, Inc. (“TMC”) has organically and acquisitively grown to become a leading full-service petroleum products and services company covering the southeastern US.
- After strategically reviewing its diversified business segments, TMC’s management decided to exit its Dealer Fuel Distribution business to concentrate efforts towards its branded lubricants, commercial fueling, and Fuelz fleet card businesses. TMC is one of the largest independent lubricant distributors in the country with ~16 million gallons distributed on an annual basis.
- Corner Capital was retained by The McPherson Companies to provide a strategic assessment of the Company’s Dealer Fuel Distribution business including benchmarking across all operating levers of the business with a formal presentation to the Board of Directors. Additionally, the Company requested an Estimated Fair Market Valuation for the Company. Upon review of the above, the Board directed Corner Capital to proceed with its Structured Sale Services to identify key strategic acquirers for the Company’s consideration and ultimately lead the Company through a broad structured sale auction process.
- Corner Capital executed a competitive structured sale process to the most strategically acquisitive target groups and facilitated the transaction from initial marketing, diligence, and negotiating the definitive agreements to closing.
- The Company yielded strong consideration for its Dealer Fuel Distribution segment, and successfully concluded the transaction with Majors Management. Corner Capital and The McPherson Companies identified Majors Management as a strategic and experienced distributor to build on TMC’s legacy relationships with dealers across the Southeast.