Retail- Auto Services
Great Lakes Quick Lube is an independent franchisee of Valvoline Instant Oil Change Inc. Great Lakes has a total of 105 service centers in six states and is the largest franchisee in the Valvoline Instant Oil Change ("VIOC") system.
Our client, a Canadian-based entrepreneur, was pursuing an acquisition of a 46 store VIOC franchisee for sale in the U.S. We were engaged as the investment banker to provide advice on all aspects of the transaction. Our role included: finalizing negotiations on the Letter of Intent; determining the capital structure; negotiating the terms of a vendor take-back note; sourcing and negotiating a sale lease-back of the underlying real estate relating to 29 of the locations; negotiating the terms of the partnership agreement between the equity investors; and negotiating all other business issues relating to the closing documentation.
The transaction was 100% financed through the proceeds raised from the sale lease-back, VTB and a relatively small portion of equity from the partners. NewPoint, in addition to advising on the transaction, invested in the transaction in return for a minority interest. NewPoint continued to advise the Company with respect to certain financial matters and follow-on acquisitions and had a seat on the Board of Directors.