World Fuel Services, Colonial Oil Industries Inc. and Shipley Choice LLC picked up the company's four divisions.
MILFORD, Ohio — Diversified energy solutions provider Lykins Cos. Inc. dba Lykins Energy Solutions is selling off its commercial fuels, heating oil and propane, wholesale fuels, and electricity divisions.
As part of the sale:
The commercial fuels, heating oil and propane division was purchased by World Fuel Services;
The wholesale fuels business was acquired by Colonial Oil Industries Inc., a subsidiary of Colonial Group Inc.; and
The electricity business was acquired by Shipley Choice LLC, a subsidiary of Shipley Energy Inc.
Founded in 1948 by Guy "Bandy" Lykins, Lykins Cos. Inc.'s original business operated retail service stations until 1948 when Bandy's son, Don, purchased a fuel oil truck to supply heating oil to customers. Over the years, the company diversified its operations by adding various business lines such as fuels distribution, lawn accessory sales, restaurants, tire distribution, and many others to its service offerings.
In 1999, Jeff Lykins, president and third-generation owner, became president of the company. He, along with Vice President and Chief Operating Officer Bob Manning and Vice President of Transportation Ron Lykins, made a conscious decision to focus the company on its core business of supplying customers with energy products. Many of the ancillary business lines were divested, with the proceeds reinvested in the Lykins' core business. In addition, the Company established a new business line, electricity supply, in 2014.
"Ron, Bob and I want to thank all of our talented and dedicated employees over the years for building Lykins into one of the leading, diversified energy providers in the industry, as well as one of the largest private employers in Ohio," commented Jeff Lykins. "I also want to acknowledge Matrix, who structured and diligently executed on the sale of the enterprise that maximized shareholder value."
Richmond, Va.-based Matrix Capital Markets Group Inc., an independent advisory focused, privately held investment bank, provided merger and acquisition services to Lykins, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of all three sale transactions.
The transactions were managed by Spencer Cavalier, co-head of Matrix's Downstream Energy & Convenience Retail Investment Banking Group; Stephen Lynch, director; Martin McElroy, senior associate; and Kyle Tipping, associate.
"We are honored to have advised three of the most highly respected entrepreneurial businessmen in the petroleum industry," said Cavalier. "Over their history together, Jeff, Ron and Bob successfully adapted the Lykins enterprise to changing market dynamics to better serve their customers and fortify strong, recurring financial performance. We wish each of them all the best in their future endeavors."
Rhys Wilson, Phil Cooper and Tom Ryan from Nelson Mullins Riley & Scarborough LLP served as legal counsel for Lykins.