Case Study:

Jones & Frank Corp., dual-headquartered in Norfolk, VA and Raleigh, NC, is a leading provider of petroleum equipment and services to the retail and commercial segments of the petroleum industry along the East Coast.
Prior to the transaction, Jones & Frank underwent a significant transition between suppliers to better position the Company for future growth. This transition resulted in significant costs to the Company over a two year span, negatively impacting EBITDA.

After purchasing the business in 1971, the Company’s majority shareholder was seeking a liquidity event for himself as he continued to phase out of his day-to-day role in the business. Partial liquidity was also being sought for the Company’s minority shareholders, who remained active in the business.

Matrix conducted a competitive process among private equity groups and received numerous Indications of Interest before inviting select groups to management presentations.
Process included virtual data room and seller-drafted purchase agreement.
Buyer was ultimately chosen due to strong understanding of industry dynamics and willingness to fully accept Company’s normalized EBITDA.
Deal closed in a timely manner and well above client value expectations; management team received partial liquidity and remained shareholders with attractive equity option pool.