MANSFIELD, Ohio-- EZ Energy Ltd. subsidiary EZ Energy USA Inc., Mansfield, Ohio, has completed the acquisition of its fourth block of gas stations in the United States for $32.5 million from BP Global plc unit BP Products North America Inc, reported Globes Online. The deal includes 41 gas stations as well as three lots slated for the construction of gas stations. The company has not disclosed the location of the sites. It has been buying BP sites in Pennsylvania, Ohio and Georgia.
With the closing of this deal, Ramat Gan, Israel-based EZ Energy owns 92 U.S. gas [image-nocss] stations with an annual turnover of NIS 1.8 billion ($453.69 million U.S.), on the basis of sales of 160 million gallons per year at the current price of gasoline. In addition, the company now owns 68 convenience stores with an aggregate annual turnover of $68 million.
Of the 41 gas stations in the present deal, 34 are owned by EZ Energy, five are leased in long-term contracts, and the company has fuel delivery contracts with two more. EZ Energy also signed a 20-year fuel delivery contract with BP.
EZ Energy also sold 12 of the gas stations in a sale and lease-back deal for $17 million. The company signed a 20-year lease on the properties.
When the deal was announced in mid-December 2008, Oren Zahavi, vice chairman of EZ Energy, would not divulge the name or location of the chain involved in the transaction.
Talking about the acquisition in light of the economic downturn, he told CSP Daily News at the time, "Overall, the economy does have an effect on the ability to make transactions, but it's still possible to get financing, and there is less competition bidding on packages and stores." He added, "We are well-positioned to take advantage of opportunities."
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