HOUSTON -- BlueStar Health Inc. said that its Zeon Fuel Inc. subsidiary has entered into a letter of intent to acquire a retail fuel distribution location near the George Bush International Airport in Houston.
Zeon management has initiated the due diligence process and, subject to final approval and acceptance, looks forward to signing a definitive agreement within the next 90 days.
The 3.5 Acre corner-lot truckstop is situated at the intersection of two major freeways servicing the airport area and features four diesel islands [image-nocss] and three gasoline islands under separate canopies, which the company said will distribute approximately 400,000 gallons of fuel monthly, and a 4,900-square-foot convenience store operation that the it said will generate approximately $90,000 in monthly merchandise sales.
Richard Greenwood, president and CEO of BlueStar and Zeon, said, "While this location is one of many prospective locations, we are considering for acquisition, it is the first under the new company structure and as such represents an important milestone. The location's financial metrics not only appear to meet Zeon's acquisition criteria, but the spacious lot size and optimal location will provide us with plenty of room to accommodate additional amenities in the future and significantly more traffic as the location grows under our model."
He added, "We anticipate announcing more pending acquisitions, leases and fuel contracts in the coming weeks and months."
BlueStar, through its wholly owned subsidiary, Zeon Fuel, is engaged in the business of blending purchased biodiesel and petroleum diesel fuels and distributing the blended product through retail outlets. The company intends to expand its distribution through owned and leased facilities as well as fuel contracts with retail outlets.
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