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ATHENS, Ga. -- Compass Energy Corp., through its subsidiary Independent Southern Inc., said it is in the final stages of acquiring Cairo, Ga.-based Drew Oil Co. for approximately $19 million.
The purchase also includes three convenience stores and more than $2 million in operating assets. Drew distributes more than 11 million gallons of fuel annually.
For Compass Energy, the acquisition would boost its presence in the Southeast, as well as increase its distribution network to approximately 300 stores.
"We are aggressively expanding our operations through acquisitions of retail store and fuel distribution centers," said Pete Iodice, president and CEO of Compass Energy. "Our immediate goal is to expand our operations through the Southeast with broader expansion plans for 2002."
Compass Energy operates three divisions, Retail Convenience Stores, Inc., Independent Southern, Inc., and Petroleum Products Southern Inc., which distributes, markets, and sells, fuel through its fleet of trucks, convenience stores and a travel center. The company is projecting for fiscal year end 2001 approximate gross revenues of $7.5 million and approximate net earnings of $763,000.