Jernigan Oil sells convenience retail division to Sunoco Retail

Matrix Capital Markets Group Inc. advised Jernigan Oil Co. Inc. on the sale of its convenience retail division to Sunoco Retail LLC, an affiliate of Sunoco LP.

Jernigan Oil, headquartered in Ahoskie, North Carolina, operates a diversified business that includes convenience retail, propane distribution, commercial fuels, fuels transportation and marina operations. Proceeds from the sale will be used to reinvest in and expand the company’s remaining businesses.

Founded in June 1948 by L.S. Jernigan Sr. and his son, L.S. Jernigan Jr., Jernigan Oil began as a farm machinery sales business before expanding into the fuels industry. In 1983, third-generation owner James “Duck” Harrell and his wife, Jerri, opened the company’s first convenience store in Murfreesboro, North Carolina. The convenience retail division later grew to 24 locations, becoming the largest family-owned convenience store chain in eastern North Carolina at the time.

In 2006, Michael Harrell succeeded his father as president of the company. Under his leadership, the convenience retail division expanded further in eastern North Carolina and southeastern Virginia. At the time of the transaction, the division consisted of 56 Duck Thru Food Stores.

Matrix provided merger and acquisition advisory services, including valuation advisory, marketing the business through a confidential, structured sale process, and negotiating the sale and related transaction documents. These included a post-closing lease of 21 stores, a fuels transportation agreement and a propane supply agreement. The transaction was managed by Cedric Fortemps, co-head of Matrix’s Downstream Energy and Convenience Retail Investment Banking Group, along with Kyle Tipping, vice president, and Ethan Sannes, analyst.

“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,” says Michael Harrell. “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.”

“Our relationship with the Harrell family began nearly 15 years ago, and from our very first interaction, it was clear that their entrepreneurial drive and commitment to building enduring businesses set them apart,” says Fortemps. “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 to Jernigan Oil.

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