Schmidt & Sons, Inc. Acquired by Kappa Texas Oil Company
For Immediate Release
Austin, TX
September 12, 2024
GONZALES, TX – Schmidt & Sons, Inc. (“Schmidt & Sons,” or the “Company”), a leading Central Texas distributor of commercial fuels and branded lubricants headquartered in Gonzales, TX, announced the successful sale of its business assets to Kappa Texas Oil Company (“Kappa Texas”), an affiliate of Grupo Energéticos of Monterrey, NL, Mexico. Kappa Texas acquired Schmidt & Sons’ 5 commercial bulk plants, 4 cardlocks, 3 branded lubricants marketer agreements, its statewide fleet fueling business (“wet hosing”), and transportation rolling stock.
The Company’s history dates to 1956, when Henry C. Schmidt, Sr. and his wife Dorothy Schmidt began their consignee relationship with Humble Oil Service Station in Gonzales, Texas. In 1960 Schmidt & Sons, Inc. was created to expand the business as a Mobil branded marketer supplying service stations and agricultural customers throughout Central Texas. In 1988 Henry C. Schmidt, Jr. and Keith Schmidt assumed ownership of the business and further expanded the Company’s service offerings. Henry, Jr. and Keith transformed the business under their leadership, developing the branded lubricants distribution business and fleet fueling or “wet hosing” business. The Schmidt brothers also expanded the Company’s geographical footprint, growing the customer base from Gonzales County and surrounding areas to eventually span across the state of Texas.
Henry, Jr. and Keith Schmidt commented, “The Corner Capital team began their work with us more than 2 years ago with strategy and valuation projects to assist us in determining our options. When we decided to explore an exit option, their stewardship and transaction advisory proved critical to consummating a successful transaction with Kappa. We look forward to the Kappa team providing our customers and employees with the same thoughtful and detailed attention as we have since 1988.”
Corner Capital Advisors, LLC provided valuation, strategic advisory, and mergers & acquisitions services to Schmidt & Sons. The transaction was managed by Carl Ray Polk, Jr., Sean Stewart, CFA, and Nick Stricker, CPA. Carl Ray Polk, Jr. added, “Having known Henry and Keith for over 25 years, we were honored to advise their family through the strategic sale process. Schmidt & Sons has built a significant presence in the commercial fuels and branded lubricants businesses in the state of Texas. The Company has a long history of top-tier customer service in the commercial fuels and lubricants space, which has driven the Company’s continued success. We believe the sale of Schmidt & Sons business assets to Kappa Texas generated a successful outcome and opportunity for both parties.”
Schmidt & Sons’ legal counsel was provided by Donald H. Grissom of Grissom & Thompson, LLP, Austin, TX.
Kappa Texas was represented by Byron T. Stone of Elms Macchia, PLLC, San Antonio, TX.
FOR FURTHER INFORMATION
Carl Ray Polk, Jr., Corner Capital, crpolkjr@cornercapitaladvisors.com
Sean Stewart, CFA, Corner Capital, sstewart@cornercapitaladvisors.com
Nick Stricker, CPA, Corner Capital, nstricker@cornercapitaladvisors.com
About Corner Capital
Formed in 2006, Corner Capital provides national transaction advisory services to all constituents in the Downstream Energy, Multi-Unit Retail, Business Services, and Distribution industries. Corner Realty, LLC is a nationally licensed real estate brokerage company dedicated to convenience and other retail industries. Our national market coverage serves clients with staff in Texas, California, and Florida. For more information, please visit http://www.cornercapitalpartners.com/ or contact P. A. Weber III (Andy) at aweber@cornercapitalpartners.com, (805) 965-5510.