RICHARDSON, Texas -- Titan Global Holdings Inc.'s Appalachian Oil Co. has reached an agreement to acquire two additional convenience and fuel distribution locations in Virginia. The acquisitions raise the total number of convenience stores operated by Appco to 56, with additional locations expected over the next 24 months.
Titan achieved economies of scale and central services administrative infrastructure through its acquisition of Appco in the first quarter of fiscal year 2008. Appco 's existing administrative infrastructure can support a significantly larger revenue base of operations [image-nocss] with only modest increases in administrative costs, the company said.
"We are working with principals and major oil suppliers in our existing markets to facilitate growth opportunities," said Bryan Chance, president and CEO of Titan Global Holdings. "As well, we are in advanced discussions with other independent operators, chain operators and other parties to execute our stated vision of growing Titan's energy distribution network. Titan's Energy Division is positioned for continued growth through organic efforts and acquisitions."
Titan is in active discussions with a number of complementary businesses to Appco in markets wherein it currently has existing operations or in contiguous markets as a means to expanding the company's distribution footprint and open significant new revenue opportunities.
Appco this week entered into third-party agreements to operate retail petroleum and inside store operations at one of the locations and documentation is pending at the second location. Appco now operates 20 locations in Virginia and 56 locations in the southeastern United States.
"We believe that these acquisitions are the first of more to come as we look to further benefit from Titan's sizable financial and professional assets," said Marty Anderson, president of Appco. "We are aggressively seeking opportunities to grow organically in the markets we currently serve and look to continue to grow our distribution footprint contiguous markets as well."
Appco generated more than $400 million in annual revenues in fiscal year 2007. It distributes petroleum products to more than 170 dealers and operates 56 retail locations. Appco has more than 550 employees and maintains long-standing partnerships with strategic terminal operators and major oil companies.
Titan Global Holdings is a diversified holding company with a dynamic portfolio of subsidiaries spanning international telecommunications, electronics and homeland security, consumer products and energy resources and distribution.
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