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By W.B. King
NEW YORK -- Oren Zahavi, vice chairman of E-Z Energy Ltd told CSNews Online the company will purchase 15 gas stations and convenience stores and five fuel supply contracts from BP Products North America Inc.
"We have been in discussions with BP for a few months," Oren Zahavi, vice chairman of E-Z Energy, a subsidiary of EZ Energy USA Inc., told CSNews Online. "This falls inline with our existing strategy…we try to dominate where we operate, and the BP brand is one we are very interested in."
At $3.2 million, the deal provides the company with a stronghold in Petersburg, located in central Pennsylvania. In total, the company will operate 25 company-owned and six dealer locations in Pennsylvania and Ohio.
"This transaction allows us to enter in as jobber which will significantly improve our relationship," Zahavi told CSNews Online. "We are very interested in the brand name."
With regards to the specifics of the deal, Zahavi said, "Since we are publically traded company I can not comment on that today."
In related news, EZ Energy USA has also signed an memorandum of understanding (MOU) for the sale of up to five gas stations and convenience stores to a real estate investment trust (REIT) for $7 million, which EZ Energy will lease back for 15 years at $630,000 rent a year, giving a return on investment of 9 percent, Globes Online reported.