ROSEVILLE, Calif. — Thirteen convenience stores in northern California are changing hands.
In the latest industry merger-and-acquisition play, Toms Sierra Co. Inc. sold 13 of its 16 c-stores to an undisclosed buyer. The stores are located outside Sacramento, in the surrounding foothills of the Sierra Nevada mountain range, and operate under the Sierra Express brand name. The stores sell 76-branded and Sierra Energy-branded fuels.
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, according to Matrix Capital Markets Group Inc., which advised the company on the sale.
Toms Sierra was founded in 1959. Over the subsequent decades, 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 turned its focus to its c-store division, resulting in the sale of under-performing assets.
"It's been a challenging and complex effort to sell the stores during a pandemic. We are grateful for the efforts of Cedric Fortemps and the Matrix team," said Toms Sierra President Brad Barnett. "I can't imagine such an undertaking without their expertise and assistance. We look forward to watching the transition to the buyer with our foothill locations."
Matrix 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 transaction was managed by Cedric Fortemps, co-head of Matrix's Downstream Energy & Convenience Retail Investment Banking Group; Stephen Lynch, director; and Kyle Tipping, associate.
Fred Whitaker and Ashley Bolduc of Cummins & White LLP served as legal counsel for Toms Sierra.