RAMAT GAN, Israel -- Israeli holdings company EZ Energy Ltd. has signed two deals for the purchase of another 40 gas stations in the U.S. Midwest. The deals totaled approximately $39 million. The company did not identify the sellers.
We are working vigorously to locate additional groups of stations, and we believe that we will sign additional deals in the new future, Oren Zahavi, EZ Energy's deputy chairman, told Ynetnews.
The annual revenues of the stations purchased by EZ Energy totaled $140 million last year, while the operating [image-nocss] profit amounted to $6.3 million.
In early January 2007, EZ Energy signed an agreement to buy 15 unidentified stations and conveniences stores on the U.S. East Coast for $15 million, according to Globes Online, another Israeli newspaper.
In separate transaction, EZ Energy said that it had exchanged draft contracts to buy three clusters of stations and c-stores for $90 million. The 60 unidentified properties in this deal have an annual turnover of $215 million on 300 million liters of fuel products, said the report.
The 15 unidentified properties have an annual turnover of $55 million. The company also has an option to buy an office building, land and fuel tanks adjacent to one gas station for $1.75 million.
EZ Energy added that the unnamed seller was in talks with third parties to buy an additional gas station for $1.25 million. If that deal is closed, the company said it would be given an option to buy the station for the same amount.
And in mid-January 2007, EZ Energy signed an agreement to buy 26 unidentified U.S. stations and c-stores for $24 million, plus inventory, Globes added.
Ramat Gan, Israel-based EZ Energy (formerly known as Gibor Real Estate Ltd. and Adiron Investments), is reportedly working to locate and purchase clusters of U.S. stations. The company's strategy is to locate clusters that ensure high yields, and at the same time try to introduce financial partners. This way, the company plans to purchase a large number of stations using relatively small equity to complete the acquisition.
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