Classic Star Group LP and Ziptron Energy Inc.
Service Type: Valuation Services, M&A
Client: Classic Star Group LP and Ziptron Energy Inc.
Client Description: Multi-branded distributor of branded and unbranded motor fuels to 700 dealer accounts and 300 commercial accounts across Texas, Louisiana, Tennessee, Virginia, Kentucky, and Georgia. Formed in 1999, the Company distributes branded petroleum products including Chevron, Exxon, Mobil, Shell, Motiva, Texaco, Valero, Conoco, Phillips 66 across its two companies (Classic Star Group LP and Ziptron Energy Inc.). Both companies also distribute lubricants, propane, and motor fuels to commercial end-users in their geography, selling ~300MM gallons on an annual basis.
- The Client sought retirement from the industry after having grown the business organically and through acquisitions over the course of 22 years.
- Corner Capital performed a Fair Market Valuation for Classic Star Group and Ziptron Energy Inc and outlined a Structured Sale Process during 2019. After COVID interrupted the process in 2020, the Client re-engaged with Corner Capital in early 2021. Corner Capital ran a structured sale process of the Client’s business assets to a very select group of highly qualified & capable buyers.
- Corner Capital sourced proposals from each of the potential buyers that it engaged under a non-disclosure agreement and sharing of the marketing material in Corner Capital’s Confidential Information Memorandum & data room. Through two rounds of extensively negotiating the most competitive Letters of Intent, Brad Hall & Associates was selected as the winning bidder to acquire Classic Star Group LP and Ziptron Energy Inc in Corner Capital’s structured sale of the Client’s business assets.
- Chevron had a right of first refusal (ROFR) on the business assets, and ultimately decided not to exercise or assign this right, granting Brad Hall & Associates to move forward in buying the business.
- Corner Capital worked closely with Classic Star Group LP and Ziptron Energy Inc from valuation, sourcing & negotiating LOIs, contractual negotiations, diligence, to closing.
- The Client’s operations and business assets were successfully marketed and sold to Brad Hall & Associates, which closed October 1, 2021.