EZ Energy USA Inc., the U.S. entity of Israeli-based EZ Energy Ltd., has signed a contract to acquire 42 gas stations in the U.S. and all related inventory – as well as four lots – for a reported $32.6 million, according to McClatchy-Tribune news service.
Investec Bank (UK) and a private investor will invest $7 million in EZ Energy USA for a 27% stake in the company, and later invest an additional $3 million for a 7.6% stake, making for a total $10 million investment.
When the gas station deal is closed, EZ Energy will own 93 gas stations and convenience stores. The stations sell 160 million gallons of gas a year and the turnover for the convenience stores is $68 million a year, according to McClatchy-Tribune.
Early in 2007, EZ Energy Ltd. said it was gearing up to acquire a number of gas stations in the U.S., and estimated that its holdings would eventually amount to 106 stores.
The company’s strategy has been to locate convenience store and gas station clusters that ensure high yields while introducing financial partners in the deals.