WEST PALM BEACH, Fla. -- Petroleum Consolidators of America Inc., a targeted, gasoline station and facilities consolidator, announced that it has completed the acquisition of its second location.
The company's second business acquisition is located on a major thoroughfare in Miami. The site is currently branded as a CITGO station and includes five pump islands with 20 gasoline pumps, an automated car wash, two self-service car washes and a large, high-volume convenience store.
Its first location, acquired in a deal completed in [image-nocss] early March, is a Valero-branded station in Fort Lauderdale, Fla.
This latest acquisition is currently cash flow positive, generating $4.5 million in annual revenue with approximately $225,000 of net income, which is expected to be immediately accretive to earnings.
Petroleum Consolidators of America president and CEO David Cohen said, While operational performance is improving month over month from our first acquisition, we are continually conducting due diligence on a number of similar opportunities. Additionally, we are extremely pleased to acquire this existing, high volume and profitable location as an important step in our overall acquisition plan.
He added, Our new CITGO-branded facility includes a large convenience store that is already profitable but has the potential for net income improvements. We know that our latest business acquisition can benefit immediately from economies of scale and increased operating efficiencies under the Petroleum Consolidators umbrella.
Petroleum Consolidators of America has said that it is implementing a targeted rollup strategy to create a portfolio of consolidated retail gasoline stations and c-store facilities nationwide that will benefit from substantial operating efficiencies and rapid market acceptance as a result of acquisition.
The West Palm Beach, Fla., company also has said that it expects to acquire profitable gasoline businesses that include c-stores and other branded offerings, including ancillary products and services such as grocery and car care products, tobacco, beer, soft drinks, self-service fast food, publications, money orders and other services, and that it will implement a number of strategic directives to substantially improve revenue and net income at each facility it acquires.
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