Mergers & Acquisitions

Mutual Oil's Unbranded Focus

Petroleum distributor sells branded dealer business

BROCKTON, Mass. -- In a divestment deal that allows it to focus exclusively on its rapidly growing unbranded fuels' supply and trading business, now present in most states along the East Coast, Mutual Oil Co. Inc. has sold its branded, contract dealer business, consisting of more than 150 dealer supply contracts, structured agreements and a transportation fleet.

Mutual Oil (CSP Daily News / Convenience Stores / Gas Stations)

As reported in a 21st Century Smoke/CSP Daily News Flash, the company sold the dealer supply contracts and structured agreements to an undisclosed purchaser. It sold the transportation business, comprised of 22 transports, to another undisclosed purchaser.

Matrix Capital Markets Group Inc. conducted the transactions through a structured-sale process with a simultaneous closing.

Richmond, Va.-based Matrix provided merger and acquisition advisory services to Mutual Oil, which included valuation advisory, transaction structuring, marketing and negotiating. Thomas Kelso, managing director and head of the Downstream Energy & Retail Group, and Spencer Cavalier, managing director, co-managed the transaction.

Ed Rachins and Steve Shaer own and operate Mutual Oil, a major diversified, privately held petroleum distributor founded in 1937 and based in Brockton, Mass. Shaer's son, Jon Shaer, has managed and grown the branded supply business over the last several years.

Mutual Oil was founded as a single-site gas station in 1937. By the 1950s, the company grew to approximately 30 sites and entered the home heating oil business. By 1980, Mutual Oil had become the largest gasoline chain based in southeastern Massachusetts, with retail operations throughout New England.

The company sold its home heating oil business in 1984 and in 1985 began to develop its branded retail and wholesale businesses. Shortly thereafter, CITGO Petroleum made Mutual Oil a distributor, and in 1986, Mutual Oil purchased the Texaco distributorship of Granite State Petroleum. Beginning with these two brands, Mutual rapidly expanded its wholesale operation. Over the next two decades, it added the following brands to its list of distributorships: Texaco, Sunoco, Coastal, Gulf, Shell, Getty, Lukoil, Valero and Mobil.

In March 2003, Mutual Oil exited the retail gasoline business.

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