David Cohen, president and CEO of Petroleum Consolidators, said, "This financing engagement [image-nocss] is a critical milestone in our company's history. It sends a clear and positive message to our industry that we will have the resources to continue moving forward with our business plan to build a regional presence of gasoline stations with convenience stores and a wholesale fuel business."
He added, "We are confident that these funds will be used efficiently to maximize Petroleum Consolidators revenue and profitability as we continue to pursue strategic opportunities in our industry."
The West Palm Beach, Fla.-based company recently announced that it had "streamlined its core focus."
After several weeks of additional due diligence and extensive negotiations towards completing a definitive merger agreement with the Indiana-based coal company, Petroleum Consolidators board made the decision to not close on the pending merger. It evaluated the highest and best use for the deployment of capital, it said, "and we feel that aggressively pursuing and acquiring undervalued retail gasoline station assets could lead to the highest return on investment (ROI) in the shortest amount of time."
Cohen said, "There are continuous opportunities in the gasoline retail and wholesale business because of the current landscape and the seismic shifts in the industry. Moreover, the opportunities that we seek are distressed assets which could be purchased at significant discounts to their intrinsic value and can become accretive to earnings once a location is operational."
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