Transaction Summary
The Company
Aziz Convenience Stores LLC was the largest privately-owned, independently branded convenience store/gas station chain in the Southern Texas market. The chain, headquartered in McAllen, TX, operated 28 convenience stores/gas stations.
Despite having positive EBITDA, the company was unable to service its $28 million indebtedness and owed back sales taxes of $10 million. In Chapter 11, the company hired Keen to create an exit by simultaneously marketing the business and its assets for multiple alternative transaction structures including sale-leaseback of the store locations, sale of the business, joint-venture, recapitalization or refinance.
The Transaction
Keen aggressively marketed the opportunity and secured a $28,000,000+ Stalking Horse Contract with a Sunoco affiliate. Following a robust overbid auction, Sunoco won the business for $41,600,000.
Separate from the convenience store/gas station chain, Keen sold a 200-acres parcel and negotiated a private sale contract on an as-is basis with a very quick closing for $5,000,000.
The Company
Established in 1983, Aziz Convenience Stores LLC was a privately owned and operated, independently branded, chain of 28 convenience stores/gas stations, located in Southern Texas. Headquartered in McAllen, TX, the chain provides gas and classic convenience store type items. The chain was the largest independently branded convenience store/gas station chain in the market.
The Situation
Despite the Company’s TTM EBITDA of $3M, they filed Chapter 11 in the US Bankruptcy Court for the Southern District of Texas. Keen was retained to create an exit for the debtor by simultaneously marketing the business and its assets for multiple alternative transaction structures including sale-leaseback of the store locations, sale of the business, joint-venture, recapitalization or refinance. In addition to the 28 convenience stores/gas stations, Aziz owned a 200-acre undeveloped and unentitled parcel of land on the outskirts of Hidalgo County.
References
- Douglas J. Brickley (Jefferies LLC): (281) 774-2086 or dbrickley@Jefferies.com
- Matthew S. Okin, Esq. (Okin & Adams LLP): (713) 228-4101 or mokin@okinadams.com
Aziz Convenience Stores, DIP Marketing Plan
