HOUSTON -- BlueStar Health Inc. said that its Zeon Fuel Inc. subsidiary has acquired a retail truckstop and convenience store operation located near the intersection of U.S. 59 and Highway 8 near the George Bush International Airport in Houston.
The truckstop, which sells gasoline through 12 pumps on three islands and diesel fuel through four pumps on four islands under the Shell brand is located on a 3.5 acre corner lot at the intersection of two major freeways servicing the International Airport area and features a 4,900-square-foot c-store facility.
The location exhibits a business [image-nocss] metrics opportunity in excess of targeted levels set by Zeon management to qualify for acquisition consideration under the company's "growth at a reasonable price" rollup plan, it said.
Furthermore, Zeon Fuel management said it anticipates that within the first year of operation, the location will increase sales to close to four million gallons of fuel or approximately $12 million in gross revenue at today's prices and $1 million in c-store sales annually on a rolling 12-month basis.
"We are delighted to have closed the first of a number of prospective locations in our evaluation pipeline," said Richard Greenwood, president and CEO of BlueStar. "While the business diligence and transaction process took a bit longer than we originally anticipated for this transaction, we believe that we will be able to incrementally speed up the process with every successive acquisition candidate going forward."
He added, "We are in advanced discussions with a number of other locations, including multi-location operations, and would expect to see acquisition activity pick up markedly in the near future."
Naved Jaffrey, chairman of BlueStar, said, "The current level of activity is behind where we expect it to be in as short a time as two months from now, but with tactics and programs we have employed at other locations we will see very positive improvements right away. We will immediately begin the process of upgrading foodservices at the location in addition to improving amenities in the truck driver rest area to deliver a better customer experience. We are also outlining a comprehensive initiative aimed at increasing operational efficiencies at the location that will incrementally benefit the bottom line and our ability to scale sales in the future."
Houston-based BlueStar, through its wholly owned subsidiary, Zeon Fuel, 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.
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