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MANSFIELD, Ohio -- Israel-based EZ Energy Ltd. has acquired 30 U.S. gas stations and convenience stores for $50.5 million plus the inventory cost, according to a report by Globes Online. The deal, which would boost EZ Energy USA's store count to 120, is expected to close in October.
The acquisition was made through Franchise USA LLC, a subsidiary of EZ Energy USA Inc.
Twenty-three of the acquired properties are owner-owned, while six are leased. This acquisition will increase EZ Energy's business to 215 million gallons of fuel sales a year and $105 million in convenience store sales a year, Globes Online reported. The company estimates its annual revenue at NIS $2.9 billion, based on the current price of gasoline of $3.50 per gallon in the United States.
EZ Energy is considering financing the acquisition through a bank loan or selling land rights to some of the properties, the financial newspaper reported.
The company also announced that CEO Oren Zehavi, who's also the controlling shareholder, will resign his post to focus on further expanding the company's U.S. operations. He will be replaced by Rafi Arad.