Mergers & Acquisitions

Toms Sierra Sells 13 C-Stores

Real estate investment trust enters into lease agreement with buyer, acquires fee-simple interest in 7 of the sites
sierra energy

ROSEVILLE, Calif. — Toms Sierra Co. Inc. has sold 13 of the company’s 16 retail fuel and convenience stores to an undisclosed buyer. As part of the transaction, an institutional real estate investment trust has acquired Sierra’s fee-simple interest in seven of the properties and entered into lease agreements with the buyer.

The stores are located outside Sacramento, Calif., in the foothills of the Sierra Nevada mountain range, and they operate under the Sierra Express brand name. Sierra’s corporate slogan is “Clean, Fast, Fresh and Friendly.” The stores sell 76 branded and Sierra Energy branded fuels.

Toms Sierra was founded in 1959. Prior to being acquired by the current majority owner in 1998, the company grew to a nearly 30-store chain with additional wholesale fuels distribution, fuels transportation and automotive services business segments. The company divested its wholesale fuels distribution and fuels transportation businesses in 2008 and subsequently optimized its c-store division by selling underperforming assets.

Roseville, Calif.-based Toms Sierra is led by Brad Barnett, president, who has worked for the company for nearly 20 years. “It’s been a challenging and complex effort to sell the stores during a pandemic,” he said. “We look forward to watching the transition to the buyer with our foothill locations.”

Independent investment bank Matrix Capital Markets Group Inc., Richmond, Va., provided merger and acquisition advisory services to Sierra, which included valuation advisory, marketing the business through a confidential, structured sale process and negotiation of the sale and lease transactions.

“The stores are being acquired by a reputable and experienced operator that will continue to provide exceptional service to Sierra’s loyal customer base,” said Cedric Fortemps, co-head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group, who managed the transaction with Stephen Lynch, director, and Kyle Tipping, associate.

Fred Whitaker and Ashley Bolduc of Cummins & White, LLP served as legal counsel for Sierra.

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