WEST PALM BEACH, Fla. -- It calls itself a development-stage company, but if the recently redubbed Petroleum Consolidators of America Inc. gets its way, it will own and operate more than 40 convenience stores and have revenues exceeding $100 million by 2010.
We are ramping up to make acquisitions immediately, and we continually review different business opportunities, company CEO David Cohen told CSP Daily News. Our goal is to acquire between 12 and 15 locations per year and have revenues that are accretive of $30 million to $35 million [per year].[image-nocss]
With corporate headquarters based in West Palm Beach, Fla., the company, trading as OTC.PK: PCAI and formerly known as Petro Plus USA Inc., is looking at acquisition opportunities in Florida and Georgia. It is easier for us to monitor activities here, Cohen said of the company's plan to focus on land acquisition, ownership and operations of a portfolio of retail gasoline stations.
He added that he expects several deals to be completed by the end of this quarter.
Petroleum Consolidators was also previously known as Striker Capital Corp., an investment company that purchased stores and leased them to operators.
The businesses the company plans to acquire include c-stores that offer a broad selection of merchandise and ancillary products and services, including car-care products, tobacco, beer, soft drinks, self-service fast food and beverages, publications, dairy products, groceries, health and beauty aids, money orders and other services.
Cohen said the publicly traded company chose the c-store industry based on its potential profit. What attracted us to the retail gas station/c-store business model was the revenue stream, cash flows and net earnings, he said. As a public company, having strong revenues and earnings, allow us to create tremendous shareholder value.
The company stated in a press release that management has already identified acquisition candidates that would allow the company to begin operations in the southeastern United States before the end of the year. The company also has developed a comprehensive acquisition plan and business integration strategy.
Part of that strategy was the hiring of Randy Baker to lead its business development activities. Baker has 27 years of business experience in mergers and acquisitions, strategy development and tactical implementation in senior levels of both public and private organizations.
In his role with companies including AutoNation, Pepsi Cola, Kodak and LASON, he led the integration efforts for more than 1,000 acquisitions, held responsibility as chief administrative officer for a multinational company and established administrative and human resource policy for 26,000 employees in a $3.7 billion operating division of AutoNation.
"The appointment of Randy Baker provides our company with the additional experience and capabilities that will allow us to achieve the financial targets in our business plan, Cohen said. His unique qualifications in identifying, closing and integrating acquisitions will allow us to aggressively begin building a revenue base.
"As a result of our efforts to meet the goals of our aggressive growth strategy, we are on target to complete transactions to acquire several sites prior to the end of 2006, Baker said in a press release yesterday. Each of these targeted acquisitions will immediately provide the company with significant revenues and gross profits from operations. Furthermore, these branded locations and their underlying real estate will offer Petroleum Consolidators the immediate ability to increase book value."
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