DALLAS -- Titan Global Holdings Inc. has released Titan Global Energy's strategic initiatives for fiscal 2008 following the acquisition of Appalachian Oil Co. (Appco).
Bryan Chance, president and CEO of Titan Global Holdings, said Titan's mission is to identify and acquire operating businesses that provide significant and immediate opportunities for growth under Titan's holding company corporate structure.
Titan's management team has executed the growth strategy through the expansion of its subsidiary operations into several multibillion [image-nocss] dollar sectors: manufacturing, technology, homeland security, communications, consumer products with wide-based distribution and now energy.
The company's entry into the energy sector will provide a more than 500% increase in revenues for 2008, he said.
Titan has a three-part strategic plan for expanding upon its initial acquisition in the energy sector:
1. Secure the supply of biofuels products through strategic agreements and acquisitions that will enhance core profitability at wholesale and retail distribution, as well as environmental responsibility in the markets it serves.
Titan Global Energy Group will be a leading source of fuel products in East Tennessee, Southwest Virginia and Kentucky with the purchase of Appco, which is expected to close in September 2007. The commitment to our shareholders drives us to provide more environmentally efficient solutions that also produce a greater financial return. As such, we are committed to increasing our distribution of biofuels products to include more ethanol blended products and biodiesel products. We plan to increase our access and distribution of biofuels products over 10% in fiscal year 2008, said Chance.
Our strategic equity investors and management team are pursuing strategic supply agreements to increase our access to these biofuel products, he added.
2. Seek opportunities through Titan Global Energy to vertically integrate and increase its leverage and position in the energy product life cycle.
With the anticipated purchase of Appco, Titan Global Energy will have strategic relationships with terminal operators that provide reliable access to the necessary fuels to supply its customers. During fiscal year 2008 and beyond, we will seek opportunities to expand our vertical integration efforts to add strategic relationships or acquisitions of such assets that further vertically integrate our efforts, Chance said.
Our strategic equity investors and management team are pursuing the strategic acquisition of domestic natural resources to upstream into Titan's distribution channels, he added.
3. Expand the markets it serves through acquisitions and organic growth in contiguous markets.
As previously reported, concurrent with the formation of Titan Global Energy, the company announced the execution of a definitive purchase agreement to acquire 100% of the outstanding stock of Appco, representing the company's initial acquisition in the sector. Appco is a privately held petroleum company that owns and operates a petroleum product distribution network that generated approximately $400 million in revenues for fiscal 2006.
Appco distributes petroleum products to more than 160 dealers in the southeastern United States and owns and operates 56 convenience store locations. Appco has more than 550 employees and maintains long standing partnerships with strategic terminal operators and major oil companies.
Appco's strong revenue base and storied 84-year history provides Titan with an ideal platform company for further expansion of its energy efforts. Furthermore, Titan will preserve and leverage Appco's industry-leading management team, which has more than 125 years experience in the petroleum and convenience store industry, said Chance.
The company also plans on making Appco a market leader in the distribution of biodiesel and ethanol products, he said.
Titan will grow Titan Global Energy by leveraging the existing Appco operation through the continued accumulation of market share and growth in other contiguous markets in the Southeast. As well, Titan plans to acquire complimentary assets in the energy sector that will strengthen Appco's distribution, improve vertical integration and increase access to valuable natural resources.
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