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DALLAS -- Following its acquisition of Appalachian Oil Co. (Appco), Titan Global Holdings Inc. has set forth a three-part strategic plan for fiscal 2008 that calls for the company to grow by aggressively leveraging the existing Appco operation.
In addition to its plans for continued accumulation of market share and growth in other contiguous markets in the Southeast, Titan intends to acquire complimentary assets in the energy sector that will strengthen Appco's distribution, improve vertical integration, and increase access to valuable natural resources, the company reported. Appco owns and operates 56 c-store locations and distributes petroleum products to more than 160 dealers in the Southeastern U.S.
Bryan Chance, Titan president and chief executive officer, detailed its three-part strategic plan for expanding upon its initial acquisition in the energy sector as such:
Initiative 1 -- Secure the supply of biofuels products through strategic agreements and acquisitions that will enhance core profitability at wholesale and retail distribution, as well as environmental responsibility in the markets the company serves.
With the purchase of Appco, expected to close in September 2007, Titan Global Energy Group will be a leading source of fuel products in east Tennessee, southwest Virginia and Kentucky. It is committed to increasing its distribution of biofuels products to include more ethanol-blended products and biodiesel products. Titan plans to increase its access and distribution of biofuels products by more than 10 percent in fiscal year 2008.
Initiative 2 -- Seek opportunities through Titan Global Energy to vertically integrate and increase its leverage and position in the energy product life cycle.
With the Appco purchase, Titan Global Energy will have strategic relationships with terminal operators that provide reliable access to the necessary fuels to supply its customers. During fiscal year 2008 and beyond, it will seek opportunities to expand vertical integration efforts to add strategic relationships or acquisitions of such assets that further vertically integrate its efforts.
Initiative 3 -- Expand the markets it serves through acquisitions and organic growth in contiguous markets.
Concurrent with the formation of Titan Global Energy, the company announced the execution of a definitive purchase agreement to acquire 100 percent of the outstanding Appco stock, representing the company's initial acquisition in the sector.
Appco's strong revenue base and storied 84-year history provides Titan with an ideal platform company for further expansion of its energy efforts. Furthermore, Titan will preserve and leverage Appco's industry-leading management team, which has more than 125 years experience in the petroleum and convenience store industry.
Titan said its entry into the energy sector will provide a more than 500 percent increase in revenues for fiscal 2008.