EZ Energy Buys BP’s Remaining Pa. Sites

Israel-based EZ Energy Ltd. will buy 15 gas stations and convenience stores and five fuel supply contracts from BP Products North America Inc. for $3.2 million, Globes online reported. The properties are BP’s last remaining gas stations in the Petersburg, Penn., area.

EZ Energy said fuel deliveries by the acquired properties totaled 33.1 million gallons in 2007, while the convenience stores’ aggregate revenue was $6.3 million.

The five fuel supply contracts cover 37 gas stations in the area for a 20-year period, the Globes reported. As a jobber, EZ Energy will deliver more than 72 million gallons of fuel a year, worth an estimated $280 million annually.

EZ Energy will own 50 gas stations and convenience stores in Pennsylvania and Ohio with an estimated annual revenue of over $350 million.

EZ Energy USA has also signed a memorandum of understanding for the sale of up to five gas stations and convenience stores to a real estate investment trust for $7 million, which EZ Energy will lease back for 15 years at $630,000 a year in rent, giving a 9% return on investment .

EZ Energy’s board also approved a deal to sell the rights to four gas stations and convenience stores in Petersburg, Penn., to chairman Eli Zahavi for $5 million.

"EZ Energy is implementing its strategic plan, while simultaneously continuing to acquire gas stations and convenience stores in quality locations,” Zahavi said. “We are also selling the gas stations real estate in our possession in order to implement our business model for financing the company’s future expansion."

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