Fuels

Empire Expanding

Israel-based Isal Amlat's Empire Petroleum purchases U.S. fuel distributor S&S Oil
HERZLIYA PITUACH, Israel -- Empire Petroleum Holdings LLC, through Isal Amlat Investment Ltd., a unit of Kaman Holdings (Mendelson Group) Ltd., has expanded its U.S. fuel business with the acquisition of S&S Oil Co. Ltd. for $2.85 million plus a $600,000 cash injection into S&S as working capital, reported Israeli newspaper Globes Online. S&S Oil distributes fuel to 79 gas stations, 12 on consignment, in Tennessee, Mississippi and Arkansas.

The acquired company, based in Batesville, Miss., sells about 45 million gallons of gasoline a year. It posted $106.5 [image-nocss] million revenue in 2008, up from $91.5 million in 2007, according to the newspaper.

Isal Amlat owns 50% of Rockville, Md.-based Empire Petroleum. Under CEO Barkley Booth, Empire Petroleum operates in two major lines of business: fuel distribution to 140 U.S. gas stations and secondary leasing of 31 stations. It has distribution agreements with BP, Getty, Sunoco, Lukoil and others.

S&S is a fuel distributor under the Mansel Oil label, mainly for BP plc in long-term contracts, said the report.

In October 2007, Herzliya Pituach, Israel-based Isal Amlat entered the U.S. fuel market when it acquired its stake in fuel distributor Empire Petroleum, which operates on the East Coast. The acquisition of S&S is part of Isal Amlat's expansion strategy through mergers and acquisitions of local companies, the report said.

Kaman CFO and Isal Amlat CEO Eran Saar said, "The present deal expands Empire Petroleum's presence in its target markets, and boosts its sales to over 90 million gallons a year, ensuring the company a regular cash flow for many years. We're continuing to examine other deals in the U.S."

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