ROCKVILLE, Md. -- In its second investment in U.S. convenience stores in the past three months, Israeli company Isal Amlat Investments Ltd. has purchased half the ownership of 19 c-stores and the long-term leasing rights to two more for $23.5 million, through its subsidiary Empire Petroleum Holdings LLC, according to Globes Online.
Eighteen of the properties are in Virginia, and the others are in Tennessee. Most of the properties are located on Interstate 81 between the two states. All the properties include convenience stores and most also have car [image-nocss] washes.
All the properties are independently owned and pay rent and fees for the right to operate them, according to Globes. Isal added that the properties posted $80 million revenue in both 2005 and 2006, and the pretax profit was $3.8 million in 2005 and $3.8 million in 2006. Isal did not say from whom the properties are being purchased.
In August, Isal Amlat purchased half of Rockville, Md.-based Empire Petroleum for $6 million.
At that time, Empire Petroleum vice president Jarett Minkoff told CSP Daily News the deal will meet goals set by both companies. We're always interested in growing, he said. This is a great opportunity for them to get into the market and for us to grow.
Empire Petroleum, a Lukoil distributor, has long-term contracts to supply 65 million gallons of fuel a year to 140 gas stations on the East Coast. Minkoff confirmed that Empire does own some of those stations, but he would not say how many. Attempts to reach Empire for comment for this story were unsuccessful.
The Empire purchase is Isal Amlat's second attempt to enter the U.S. petroleum-retailing market. Last year, it agreed to purchase nine gas stations in South Carolina for $11.2 million, but pulled out following the due-diligence review, according to Globes.
Isal Amlat has investments in industry, real estate, and commerce. It holds a controlling stake in cosmetics chain New Pharm Ltd. and battery producer Schnapp Ltd. It is a public subsidiary of Kaman Holdings, traded on the Tel-Aviv Stock Exchange. Kaman Holdings holds 73% of Isal Amlat stock. Founded in 1987, Isal Amlat was acquired by Kaman Holdings in early 2005.
Isal Amlat previously held a stake in Delek US Holdings Inc. It sold its share of the company on June 14, 2007.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.