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ISRAEL -- The Israel-based EZ Energy Ltd., a holding company controlled by Eli Zahavi, signed two agreements over the weekend to purchase 40 gas stations in the Midwest region of the United States for approximately $39 million, reported Ynetnews.com.
Annual revenues of the gas stations totaled $140 million in 2006, while the operating margins generated $6.3 million, the report stated.
"We are working vigorously to locate additional groups of stations, and we believe that we will sign additional deals in the new future,'' said Oren Zahavi, the company’s deputy chairman.
EZ Energy has been ramping up funds to acquire a large number of convenience stores/gas stations in the U.S. The company closed a private placement of bonds and warrants for investment institutions in February, to generate funds for the acquisition of more than 100 convenience stores located in the U.S., Convenience Store News reported in February.
"We intend to use the proceeds from the offering to close deals that we have announced for the purchase of over 100 gas stations and convenience stores in the U.S., as well as new deals in this field, which are now under consideration,'' said EZ Energy chairman Eli Zahavi.
Excluding the most recent transaction, the company already signed two acquisitions agreements and is in negotiations for three more deals carrying a total investment of $140 million, according to published reports. When the five agreements are complete, the company will own 106 convenience stores in the U.S., which it estimates will generate an aggregate $375 million in revenue a year.