Sale expected to close Sept. 15.
Israel-based EZ Energy Ltd. is selling its U.S. gas station and c-store operations for $64 million to a foreign operator, whose name has yet to be disclosed, Globes reported.
The proceeds derived from the sale are expected to cover all the company’s debt to Israeli bondholders and the loans of subsidiary EZ Energy USA Inc. The company plans to offer to redeem all its bonds in full when the sale is closed on Sept. 15.
The company’s U.S. operations include the management of 91 gas stations and convenience stores in Pennsylvania and Ohio. EZ Energy USA owes $17 million to a U.S. bank and Israel’s Mustang Mezzanine Fund, and $26 million to its bondholders. After repaying these debts, the company expects to report a capital gain of $10 million on the sale, Globes reported.
The economic crisis and rise in fuel prices impacted margins and reduced sales and as a result, EZ Energy was unable to buy more gas stations that would give it the critical mass to be profitable. It posted a loss of $5 million in 2011 and $2.4 million in the first quarter of 2012.