Jernigan Oil Company has sold its convenience retail division to Sunoco Retai, an affiliate of Sunoco. Jernigan is headquartered in Ahoskie, NC and operates a diversified business that includes convenience retail, propane distribution, commercial fuels, fuels transportation, and marina operations. Jernigan will use the proceeds from the sale of its convenience retail division to reinvest and grow its other businesses. Matrix Capital Markets Group, Inc. advised on the sale.
Jernigan Oil Company, Inc. was founded by L.S. Jernigan Sr. and his son, L.S. Jernigan Jr., in June 1948 as a farm machinery sales business. Over the years, as leadership was passed down to younger family members, the Company grew and became involved in the fuels business. In 1983, third-generation owner James “Duck” Harrell opened the first convenience store in Murfreesboro, NC. Under Duck’s leadership, the convenience retail division grew to 24 locations, making it the largest family-owned convenience retail chain in Eastern North Carolina at the time. In 2006, Michael Harrell succeeded his father, Duck, as president of Jernigan Oil Company. Michael, along with his wife Billie-Joe and their three children, Miles, Jordan, and Mary-Joe, continued to grow the convenience retail division in Eastern North Carolina as well as in Southeastern Virginia. Today, Jernigan’s convenience retail division consists of 56 high-performing Duck Thru Food Stores and is recognized as the premier convenience retailer in Eastern North Carolina and Southeastern Virginia.
Matrix provided merger and acquisition advisory services to Jernigan, which included valuation advisory, marketing the business through a confidential, structured sale process, and negotiation of the sale and related transaction documents, including a post-closing lease of 21 of the stores, a fuels transportation agreement, and a propane supply agreement. The transaction was managed by Cedric Fortemps, CFA, Co-Head of Matrix’s Downstream Energy & Convenience Retail Investment Banking Group; Kyle Tipping, CFA, Vice President; and Ethan Sannes, Analyst.
Michael Harrell, President of Jernigan Oil commented, “My family and I would like to thank Cedric, Kyle, Ethan, and the rest of the Matrix Team for their tireless efforts during this process. Their credibility, expertise, and professionalism – not only throughout the sale, but over years of valuations and guidance – showed why the Matrix Team was the right fit to lead us through this important milestone. We would also like to thank our customers for their many years of trust and support. Their loyalty has been the foundation of everything we’ve built, and we are deeply grateful. Most importantly, we want to thank our employees for their sacrifices, hard work, and dedication to Duck Thru Food Stores and Jernigan Oil Company. The strength and success of this company was built by our employees, and I am sincerely thankful for their commitment, pride, and the countless ways they made this journey possible.”
Fortemps added, “Our relationship with the Harrell family began nearly fifteen years ago, and from our very first interaction, it was clear that their entrepreneurial drive and commitment to building enduring businesses set them apart. We are honored to have advised the family on the sale of the Duck Thru Food Stores and look forward to seeing them continue to grow their other businesses in the years to come.”
Otto Konrad and Kaitlin Cottle of Williams Mullen served as legal counsel for Jernigan.
