EZ Energy Ltd. (TASE:EZ) has acquired a cluster of 30 US gas stations and convenience stores for $50.5 million, plus the inventory cost. When the deal is closed in October, the company will own 120 gas stations and convenience stores across the US.
23 of the properties are owner-owned and six are leased, and will be operated through a single supply contract.
The acquisition will increase EZ Energy's business to 215 million gallons of fuel sales a year and $105 million in convenience store sales a year. The company estimates its annual revenue at NIS 2.9 billion, based on the current price of gasoline of $3.50 per gallon in the US.
EZ Energy has not yet decided how to finance the acquisition. It is considering a bank loan or selling land rights to some of the properties.
EZ Energy also announced that CEO Oren Zehavi, the company's controlling shareholder, will resign his post to focus on expanding the company's US operations. He will be replaced by Rafi Arad.
The acquisition was made through Franchise USA LLC, a subsidiary of EZ Energy USA Inc. EZ Energy share price was unchanged by midday at NIS 0.054, giving a market cap of NIS 55 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2011
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