HOUSTON -- BlueStar Health Inc. announced today that the company's Zeon Fuel subsidiary has identified more than a dozen prospective retail fuel distribution locations in southeast Texas that meet the volume and location criteria required by Zeon management for acquisition consideration. Five of the identified locations meet the financial criteria necessary for financing under the Walker Commercial Funding (WCF) credit facility announced last week.
Zeon management has also engaged the services of three specialized brokers to assist in locating and qualifying [image-nocss] candidate properties in southeast Texas that match the company's acquisition criteria. Aside from case-by-case "location evaluations," to qualify for consideration under the company's acquisition program, a prospective location should sell a minimum of 3.6 million gallons of fuel annually or generate $10 million in gross annual fuel revenues. Additionally, locations with convenience stores should generate more than $850,000 in annual revenues from convenience store operations.
Zeon Fuel is projecting that the company will "control" a total of 30 locations, either through ownership, lease or through fuel supply contracts, by the end of 2008.
"Having the WCF credit facility in place and experienced brokers in our corner assisting us in locating the right opportunities, we are well-positioned to reach our growth projections over the next 12 months," chairman Naved Jafry said. "While it is difficult to anticipate negotiation and due diligence timetables as we move forward, we are pleased with the initial level of activity and the opportunities we have been presented with so far."
Houston-based BlueStar, through its wholly owned subsidiary Zeon Fuel Inc., is engaged in the business of blending purchased biodiesel and petroleum diesel fuels and distributing the blended product through retail outlets. The company intends to expand its distribution through owned and leased facilities as well as fuel contracts with retail outlets.
Click here for previous CSP Daily News coverage of Zeon.
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