MECHANICSVILLE, Va. -- Israeli businessman Levi Kushnir, the controlling shareholder in and chairman of Nechushtan Investments Ltd. and Tadiran Ampa Ltd., has purchased 51% of the share capital of Gmul Energy Ltd., from Gmul Investment Co. Ltd. controlling shareholders Amnon Barzilai and Eyal Yona for $27 million, reported Globes Online.
Gmul Energy's sole asset is a holding in U.S. gas station and convenience store operator GPM Investments LLC, which has more than 150 stores under the Fas Mart brand in Virginia and New England and the Shore Stop brand [image-nocss] in Maryland, Virginia and Delaware. The Mechanicsville, Va.-based company also supplies fuel to 60 other operators.
I think we made an excellent deal with the acquisition of U.S. gas stations, Kushnir told Globes Online. If the chain, which was once on the verge of bankruptcy, has reached an EBITDA of $8 million to $10 million two years later, this is an excellent situation indicating the capabilities of its management. We're going to pay full attention to GPM. The agenda will include the acquisition of another chain and going public in the U.S. The energy sector is very hot, and it's possible to obtain excellent values for companies in it. That's definitely an option.
Kushnir bought control of a growing company with increasing cash flow at a company value of $53 million, the report said. The deal also includes the purchase of Gmul Investment's stake in a Syracuse, N.Y., real estate project for an additional $25 million after bank debts.
Gmul Investments vice chairman Amnon Barzilai said, We will use part of the proceeds to repay loans, and part for new investments. My goal is to turn Gmul into a cash generating company that will divest all its minority stakes in favor of substantial holdings in cash generating companies.
David McComas, CEO of Fas Mart/Shore Stop, told CSP Daily News that he is keeping an eye on the transaction, but had no other input.
The deal comes just as Franklin, Tenn.-based Delek US Holdings Inc. announced the closing of its initial public offering of a total of 11.5 million shares of its common stock at $16 per share. Its parent company, Delek Group, which will remain the majority shareholder, is a public company in Israel.
The company's common stock is listed on the New York Stock Exchange (NYSE) under the symbol "DK" and commenced trading on May 4, 2006.
The IPO resulted in net proceeds to the company of approximately $172 million. The company said it intends to use it for repayment of debt to its affiliates, future acquisitions, capital improvements to its refinery and retail fuel and c-stores, new construction and general corporate purposes.
Delek US Holdings is a diversified energy business focused on petroleum refining and supply and on retail marketing. The refining segment operates an independent refinery in Tyler, Texas. The retail segment markets gasoline, diesel and other refined petroleum products and convenience merchandise through a network of 349 company-operated retail sites under the MAPCO Express, East Coast and Discount Food Mart banners in the southeastern United States.
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