CMMI to Purchase Parent of US Fuel C-store Chain
HOUSTON -- Consolidated Medical Management Inc. (CMMI), a wholesale fuel distributor and fuel terminal operator based here, will acquire two privately owned companies headquartered in Austin, Ark. — Troutman Oil Co. Inc., and US Fuel Intl. Inc. — which operate a chain of 12 US Fuel convenience stores.
Troutman Oil distributes fuel to retailers across Arkansas, and owns and operates 12 branded US Fuel stations in the Midsouth, while US Fuel is a fuel marketing company selling fuel under the US Fuel trademark, along with operating a private label US Fuel-brand credit-card program that has more than 3,000 active cards, the company stated.
"This is an important acquisition for CMMI and its shareholders," Timothy G. Byrd Sr., CMMI CEO, said in a statement. "The addition of Troutman's distribution infrastructure, retail network, and the US Fuel brand to our current terminalling operation moves us closer to establishing CMMI as a fully integrated fuel supplier, distributor and retailer, and positions us to capture profits throughout the downstream chain."
According to the agreement, CMMI will purchase stock of Troutman Oil, US Fuel and assets for $5 million in cash, $900,000 in debt and 666,680 shares of CMMI convertible preferred stock valued at $1 million, the company stated. The final purchase price is subject to adjustment, based upon audit results of the companies, and the acquisition is expected to be complete by Dec. 10, 2007, CMMI stated.
"We are presently continuing to develop and expand this business model through both organic growth and by acquisitions of greater terminal capacity and increased geographical reach of branded retail fuel outlets within the consumer and commercial fuel distribution chains," Byrd said.
Troutman Oil distributes fuel to retailers across Arkansas, and owns and operates 12 branded US Fuel stations in the Midsouth, while US Fuel is a fuel marketing company selling fuel under the US Fuel trademark, along with operating a private label US Fuel-brand credit-card program that has more than 3,000 active cards, the company stated.
"This is an important acquisition for CMMI and its shareholders," Timothy G. Byrd Sr., CMMI CEO, said in a statement. "The addition of Troutman's distribution infrastructure, retail network, and the US Fuel brand to our current terminalling operation moves us closer to establishing CMMI as a fully integrated fuel supplier, distributor and retailer, and positions us to capture profits throughout the downstream chain."
According to the agreement, CMMI will purchase stock of Troutman Oil, US Fuel and assets for $5 million in cash, $900,000 in debt and 666,680 shares of CMMI convertible preferred stock valued at $1 million, the company stated. The final purchase price is subject to adjustment, based upon audit results of the companies, and the acquisition is expected to be complete by Dec. 10, 2007, CMMI stated.
"We are presently continuing to develop and expand this business model through both organic growth and by acquisitions of greater terminal capacity and increased geographical reach of branded retail fuel outlets within the consumer and commercial fuel distribution chains," Byrd said.