EZ Energy Ltd. (TASE:EZ) subsidiary EZ Energy USA Inc. has completed the acquisition of its fourth block of gas stations in the US for $32.5 million from BP Global plc (LSE: BP) unit BP Products North America Inc. The deal includes 41 gas stations as well as three lots slated for the construction of gas stations.
With the closing of this deal, EZ Energy owns 92 gas stations with an annual turnover of NIS 1.8 billion, on the basis of sales of 160 million gallons per year at the current price of gasoline. In addition, the company now owns 68 convenience stores with an aggregate annual turnover of $68 million.
Of the 41 gas stations in the present deal, 34 are owned by EZ Energy, five are leased in long-term contracts, and the company has fuel delivery contracts with two more. EZ Energy also signed a 20-year fuel delivery contract with BP.
EZ Energy also sold 12 of the gas stations in a sale and lease-back deal for $17 million. The company signed a 20-year lease on the properties.
EZ Energy's share rose 5.8% at the opening today to NIS 0.09, giving a market cap of NIS 87.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 7, 2009
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