MILAN, Ohio -- In a deal that gives ownership of 35 Mickey Mart Food Stores to president and CEO Dan Coles, the shareholders of Mickey Mart--his parents, Mick and Lisa Coles--successfully closed the generational transition of ownership of the Milan, Ohio-based company.
The terms of the deal were not disclosed.
Founded in 1982, Mickey Mart is a family-owned retail gas and convenience store and quick-service restaurant (QSR) operator with 35 convenience stores throughout north-central Ohio. The locations sell BP, Shell and Marathon branded fuel and operate QSR franchise brands including Taco Bell, Dunkin Donuts and Subway.
"We are proud of the legacy that has been established over the last four decades and will continue to maintain Mickey Mart Food Stores' core values of providing exceptional service to our customers," said Dan Coles. "We are well positioned and look forward to expanding Mickey Mart Food Stores with the introduction of new offerings, partnerships and strategic acquisitions through the implementation of our comprehensive corporate growth strategy. Mickey Mart is very fortunate to have a highly trained team, both at the retail and corporate level, to consistently deliver best-in-class performance."
As reported in a 21st Century Smoke/CSP Daily News Flash, private-equity firm Open Prairie Energy served as lead advisor to the Coles family on the transaction. Open Prairie assisted Mickey Mart in securing a credit facility with The PrivateBank to fund the buyout and provide a platform to accelerate expansion.
According to Steve Griffin, managing director and partner of Open Prairie Energy, "Mick Coles was looking at the options that might be best for his family and what his transitional opportunities might be, and he approached us about a year-and-a-half ago to talk about those opportunities."
Together, they developed a buyout strategy by Dan Coles of the current shareholders.
"That was the direction the family decided to go, and Open Prairie Energy was engaged to assist the company in developing what the transactional architecture would look like," he told CSP Daily News.
Dan Coles intends to keep the current management team and store-level personnel intact, Griffin said
"He has made it very clear he's fortunate for the frontline team he has at the company. It was not an organization that needed internal change," he added. "Managers, supervisors and team members are well skilled, trained people. So the transition is not operational, rather a transition of ownership."
However, he plans to "take retail ops to the next level," said Griffin. "Dan is an excellent industry operator and has a model platform for continued growth and success. [He is] opportunistically investigating how best to grow the company for the future."
Coles is in the process of building new convenience stores and restaurants in addition to other long-term growth opportunities. Dan Coles' sister, Amy Appel, has remained on the team as director of restaurant operations. She has an "in-depth background in QSR food delivery and is instrumental in the management and oversight of the company’s foodservice offering," said Griffin.
Commenting on the current state of the acquisition market, Griffin said, "In today's world of consolidation, this is a breath of fresh air to see … a transition to the second generation. Dan has been there since he was old enough to stand on a milk crate and run a register. That's not happening as much anymore with the MLPs [master limited partnerships] and the large consolidators grabbing these things up."
Chicago and Effingham, Ill.-based Open Prairie serves downstream energy companies including retail gas station and convenience store operators, wholesale distributors and major oil companies.
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