CEFCO Sells 50 C-stores to Two Buyers

TEMPLE, Texas — Fikes Wholesale Inc., dba CEFCO Convenience Stores, and its affiliates have sold 50 of the company's petroleum marketing and convenience retail stores located in Texas, Louisiana, Mississippi, Arkansas and Alabama.

The divestment of these 50 locations enables CEFCO to enhance its capital allocation and focus on investment in new stores and remodeling of existing convenience stores, the company stated.

BreakTime Corner Market LLC acquired 48 of the stores, while Refuel Operating Co. LLC, dba Refuel, acquired two stores in Mississippi.

Matrix Capital Markets Group Inc., an investment bank, advised CEFCO on the transaction. Matrix provided merger and acquisition advisory services to CEFCO, including valuation advisory, marketing the business through a confidential, structured sale process and negotiation of the transaction.

Temple-based CEFCO, which opened its first store in 1979, will continue to operate more than 200 petroleum marketing and convenience retail locations. Fikes Wholesale Inc. owns and operates a wholesale fuels business (Fikes Fuels), a fuels transportation business (Group Petroleum Services Inc.), an ATM solutions provider (CORD Financial Services), and an ATM processor (Digital Network Solutions).

"We appreciate Matrix's thorough and professional representation throughout this transaction," said Raymond Smith, president, Fikes Wholesale. "With plans to open 20 new stores this year, CEFCO will continue to build, open and operate stores that fit its vision of being a first-tier convenience-driven retailer with engaged employees who sell great food and provide great service in an exceptionally clean environment."

Added Spencer Cavalier, co-head of Matrix's downstream energy and convenience retail investment banking group, "Fikes is one of the best managed and disciplined convenience retailers in the U.S. We are honored to have worked with their executive management team to divest these stores in order for them to redeploy capital to continue growth in their target markets and preferred store prototypes."

Founded in 2004 in Houston, Breaktime Corner Market operates and manages gas stations, convenience stores and car washes; develops new ground-up gas stations, retail shopping centers and office buildings; and acquires land for retail development. Its acquisition of 48 stores is part of its plan to keep growing its retail network from Texas to seven different states: Texas, Florida, Louisiana, California, Kansas, Missouri, New Mexico and Maine.

Charleston, S.C.-based Refuel operates more than 175 convenience stores in North Carolina, South Carolina, Texas, Mississippi and Arkansas. As Convenience Store News reported, Refuel in January received a $511 million capital infusion to continue its growth strategy.

First Reserve, a middle-market private equity firm focused on the energy and industrials sectors, tapped Sixpoint Partners to close $511 million transaction, named the First Reserve Refuel Fund. Refuel entered into a partnership with First Reserve in April 2018 to form FR Refuel to bring enhanced capitalization to support an aggressive, acquisition-based growth strategy.

Founded in 1988, Matrix Capital Markets Group Inc. is an independent, advisory focused, privately held investment bank headquartered in Richmond, Va., with an additional office in Baltimore. Matrix provides merger and acquisition and financial advisory services for privately held, private-equity owned, not-for-profit and publicly traded companies.