EZ Energy Adds 13 Stations to Portfolio

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EZ Energy Adds 13 Stations to Portfolio

ISRAEL -- EZ Energy Ltd., based here, is continuing to expand its collection of U.S. convenience stores and gas stations with the purchase of 13 locations from undisclosed sellers for $12.7 million, Globes Online reported.

The purchase price does not include the cost of inventory, which has yet to be determined, the report stated. As part of the contract, EZ Energy will operate the locations for 20 years under the existing brand and franchise, and rebrand 12 of them for an estimated cost of $2.5 million to $3.7 million. EZ Energy also will pay a one-time franchise fee of $30,000 per store, totaling $360,000, along with 8 percent of the stores' turnover.

The 13 locations saw $12.9 million in revenue and sold 31.6 million gallons of fuel in 2006, according to the company. The acquisition will be financed with bank financing and sale-leaseback, under which it will sell the properties and lease them back in a long-term contract.

"The recent deals, as well as other deals we're reviewing, are in line with EZ Energy's growth strategy," EZ Energy vice chairman Oren Zahavi told Globes Online.

This purchase follows two made in early April that pulled in 40 Midwest stations for $37 million.

EZ Energy has been ramping up funds to acquire a large number of convenience stores/gas stations in the U.S. The company closed a private placement of bonds and warrants for investment institutions in February to generate funds for the acquisition of more than 100 convenience stores located in the U.S., Convenience Store News reported in February.