As reported yesterday in a Morgan Keegan/CSP Daily News Flash, [image-nocss] the acquisition was made through Franchise USA LLC, a subsidiary of Seven Hills, Ohio-based EZ Energy USA Inc. Of the 30 properties, 23 are owned and six are leased, and will be operated through a single supply contract.
The acquisition, when completed, will increase EZ Energy's business to 215 million gallons of fuel sales a year and $105 million in convenience store sales a year.
"We're anticipating that the closing will be in the fourth quarter of this year," Buddoi said.
EZ Energy has not yet decided how to finance the acquisition, said a report by Israeli newspaper Globes. The company is considering a bank loan or selling land rights to some of the properties.
Budoi added that EZ Energy Ltd. acting interim CEO Oren Zahavi (pictured, right), who was serving in that role after the departure of Avi Geffen earlier this year, has been replaced by Rafi Arad as a permanent CEO. Eli Zahavi remains chairman of the board.
"Oren has always been the vice chairman of EZ Energy USA and EZ Energy Ltd.," said Budoi (pictured, left). "Oren has always focused his efforts on look for acquisitions in the U.S. and will continue to do so."
An aggressive growth and acquisition strategy allowed EZ Energy USA to expand to nearly 70 company-owned stores in two years. In addition, the company delivers fuel to another couple of dozen dealers. The company is a subsidiary of EZ Energy Ltd., an Israel-based and publicly traded holding company, which in 2007 acquired Central Ohio Energy Inc.
EZ Energy became the top BP-branded marketer in Pittsburgh after acquiring 26 BP units, according to CSPedia. While 15 of the stores operate under the ampm brand, 11 carry the Easy Trip brand. A second acquisition move in Cleveland gave EZ Energy 39 c-stores, two dealer supply contracts and three lots ready for development. Of these, 17 carry the ampm brand, 17 Easy Trip and third parties will operate five stores.
(Click here for previous CSP Daily News coverage of EZ Energy and its acquisitions.)When the deal is closed, the company will own 120 gas stations and c-stores across the United States.
This latest deal "is just one of a number of things we're working on right now," said Budoi. "Not only because of the capital markets, but we wanted to take a year to digest a lot of what we had acquired, so we're now back and active in the acquisition market."
As for future acquisitions, he said, "Our preference is contiguous markets, but we are looking in several other markets. If it's a big enough base, we'll move into different markets."(Click here for a recent CSP magazine feature on EZ Energy.)
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