HIALEAH, Fla. -- As part of its ongoing drive to purchase and integrate new convenience stores into its system, Capital Oil & Gas Inc. plans to acquire/lease 16 retail locations, as reported in a CSP Daily News Flash yesterday. The outlets include retail gasoline stations with convenience and fast-food operations.
This action has been sanctioned by the Hialeah, Fla.-based company's Board of Directors and is viewed by senior management as a vote of confidence in its overall strategy of becoming a major retailer of consumer-related petroleum products, including the highly lucrative ancillary [image-nocss] consumer services of convenience stores and fast-food operations, according to a press release.
The anticipated 16-outlet operation, which Capital Oil did not name in its press release, will add to the company's balance sheet on average gross revenues of $385,826 per location per month. Senior management has argued for this type of expansion fully and has been rebuffed, as the board did not want to squander profits, several times and finally the board acquiesced, according to the company.
"We are extremely pleased that our Board of Directors has finally realized that in this economy we have to grow or die. We need to expand our operations either internally or externally, and they have agreed on our growth plan of acquisitions. And we are ready, willing and able to do so," said Ariel Rodriguez, president of Capital Oil and Gas.
Capital Oil & Gas did not respond to CSP Daily News inquiries by press time. However, in a statement on its website, Rodriquez stated, “We at Capital Oil and Gas are working very hard to acquire additional gas stations and convenience stores, … and we hope to grow to be a large distributor of Petroleum products in the near future.”
In August, Capital Oil reported that it had entered "serious negotiations" to acquire or lease 11 gas stations and c-store in Florida from an unnamed seller.
Upon the successful completion of that deal and the purchase of three other previously announced properties, the company said that it would control 15 properties with projected annual gross revenues of $85 million to $92 million per year.
Capital Oil & Gas operates retail filling stations/convenience stores/fast food operations throughout Florida. The company “is aggressively seeking additional acquisitions” of comparable business operations and other related businesses that can enhance revenues and profits, according to the website.
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