EZ Energy Ltd. has signed a letter of intent and entered into an agreement to acquire 30 U.S. gas stations and c-stores for $50.5 million, plus the inventory cost, which would grow the chain’s footprint to 120 stores, provided the deal closes as scheduled in October.
The acquisition agreement, made through Franchise USA LLC, a subsidiary of EZ Energy USA Inc., is expected to increase EZ Energy’s business to 215 million gallons of fuel sales a year and $105 million in convenience store sales a year. Of the 30 locations, at least 23 are owner-operated and at least six are leased, and all are expected to be operated through a single supply contract, according to Globes.
While EZ Energy has not yet decided how to finance the acquisition, the chain is reportedly considering a bank loan or selling land rights to some of the properties. The company can not yet comment on where the properties are based due to a non-disclosure agreement.