Leathers Enterprises, Inc. Acquired by Sierra Enterprises Oregon, Inc.
Service Type: Valuation Services, M&A
Client: Leathers Enterprises, Inc. (“Leathers” or the “Company”)
Client Description: Initially founded as a single dealer operation in Sandy, Oregon, Leathers Enterprises, Inc. began when Lila Leathers entered the business in 1959 with her then-husband. Lila individually completed an outright purchase of the Company in 1991, just as the UST regulations and environmental cleanups were initiated. During her ownership, Lila was responsible for the Company’s expansion and modernization until transferring ownership to her children, Kathy and Brent. Lila passed away on November 1, 2022. Today, Leathers owns 24 convenience retail locations throughout the state of Oregon, with 9 Company-operated and 15 managed through dealer consignment agreements, all supported by a staff of approximately 130 employees. In addition, Leathers owns and operates six transports and trailers utilized for fuel distribution to its locations. Leathers prides itself on excellence in operations, including its transportation business, proprietary software systems through Snowbird, and proficient repair and maintenance team, which works closely with its store operations to remain in good standing with Oregon regulatory agencies. The Company also distributes fuel through its CFN contract, operates a U-Haul franchise, and offers proprietary and locally licensed branded food service operations at its locations.
- The Client sought retirement from the industry after having grown the business organically over 64 years, including 32 years of outright ownership. Upon the passing of Lila Leathers, the family decided to retire from the industry.
- Corner Capital performed a Fair Market Valuation for Leathers Enterprises and outlined strategic options. The Company decided to pursue a structured sale process through Corner Capital.
- Corner Capital sourced proposals from each of the potential buyers that it engaged under a non-disclosure agreement and shared the marketing material in Corner Capital’s Confidential Information Memorandum & data room. Through two rounds of extensively negotiating the most competitive Letters of Intent, S&S Petroleum, Inc. was selected as the winning bidder to acquire Leathers Enterprises in Corner Capital’s structured sale of the Client’s business assets.
- Corner Capital worked closely with Leathers from valuation, sourcing & negotiating LOIs, contractual negotiations, insurance procurement, and diligence to closing.
- The Client’s operations and business assets were successfully marketed and sold to S&S Petroleum, Inc., which closed on October 12, 2023.