EZ Energy Buys 44 BP Sites

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EZ Energy Buys 44 BP Sites

MANSFIELD, Ohio -- EZ Energy USA Inc., a subsidiary of Israeli EZ Energy Ltd., completed a $32.5 million acquisition of 41 gas stations and three lots slated for the construction of new retail fuel sites from BP Products North America Inc., Globes Online reported.

With this purchase, EZ Energy owns 92 gas stations in the U.S., 68 of which have a convenience store. The locations have an annual turnover of NIS 1.8 billion, on fuel sales of 160 million gallons per year at the current price of gas. The convenience stores generate an aggregate annual turnover of $68 million, according to the report.

In mid-December 2008, CSNews Online reported EZ Energy signed a contract to buy the group of stations, and Oren Zahavi, the company's deputy chairman, said EZ Energy "is looking to expand, even in these economic times. We think it is a good time to be a buyer, even if it is hard to find financing."

Of the 41 gas stations, 34 are owned by EZ Energy, five are leased in long-term contracts, and the two remaining have fuel delivery contracts with EZ Energy. The company also signed a 20-year fuel delivery contract with BP, the report stated.

In addition, EZ Energy sold 12 of the gas stations in a 20-year sale and leaseback deal for $17 million.

The petroleum wholesaler and distributor is not eager to turn company-operated stores into dealer stores, Zahavi said. "We have a two-pronged approach, operating stores directly and having dealers. I think that makes us more competitive in acquisitions."

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