HIALEAH, Fla. -- Capital Oil & Gas Inc. said yesterday that it has agreed to acquire/lease three additional full-service gas station/convenience stores in Florida to add to its portfolio. The announcement came a day after Podium Venture Group Inc. said that its board of directors had approved the acquisition of Capital Oil & Gas as a wholly owned subsidiary.
As reported in CSP Daily News yesterday, Hialeah, Fla.-based Capital Oil & Gas operates an undetermined number of retail stations with c-stores under the Chevron brand. The company will have revenues in excess of $25 million [image-nocss] per year, according to Podium Venture Group.
The company believes that these additional three stations will add an additional $18 million to $20 million per year in revenues to its ongoing operations/revenue stream. It will pay for these acquisitions/leases from existing cash flow and will not impede on the capital structure of the company as management views any change in capital structure as counter productive, it said.
"It is the intent of executive management to acquire/lease enough stations to generate a minimum of $100 million per year in revenue, with a potential profit margin of 8% to 10% per year overall; the company believes that it would then be in a position to become a fully reporting company and move to a more respectable venue," said Ariel Rodriguez, president and COO of Podium Venture Group.
Capital Oil & Gas operates retail stations/c-stores throughout the state of Florida; the company is aggressively seeking additional acquisitions that can meet its financial criteria, it said.
Marietta, Ga.-based Podium Venture Group is a holding company with holdings in wireless broadband and disaster recovery and business continuity. Coastal Broadband is a subsidiary of Podium Venture Group and is a wireless broadband provider in Southern Georgia. Noh Limits Consulting represents Podium Venture Groups holdings in the disaster recovery and business continuity markets.
In May, Podium Venture Group branched out into real estate with the launch of its Riviera Properties Inc. subsidiary to promote the growth of its other subsidiaries. At that time, it also announced a complete restructuring of its corporate business model and identity. It said it would establish new corporate headquarters in Miami, saying that this location geographically will better suit the company's new business operations soon to be announced. "The company will undergo major changes while implementing its new business model. Several major acquisitions within a major industry have already been put in place and contracted that will add significant revenues and shareholder value immediately," said Rodriguez at the time.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.