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DALLAS -- Titan Global Holdings Inc., a diversified holding company, was expecting to close upon its acquisition of petroleum-product distributor and retailer Appalachian Oil Co. Inc. (APPCO) within 72 hours of midday Thursday, despite a previously agreed-upon closing date of Sept. 12, the company said in a statement.
"We are nearing the completion of our acquisition of APPCO, but still have some details to work out," said Bryan Chance, CEO of Titan, in the statement. "My team and our strategic investors have worked around the clock for weeks to complete this acquisition. Given the extent and complexity of APPCO's holdings, it has been a significant undertaking to complete this transaction. We will be closing our acquisition in the immediate future."
APPCO and its 56 convenience stores will be the first purchase for the recently-announced Titan Energy Group. Titan Energy's purpose is to bring together underutilized assets to create revenue and earnings growth, which will include future acquisitions to complement APPCO's existing retail and wholesale operations, the company stated.
Titan also reached a sale-leaseback agreement with an institutional investor to acquire the property owned by APPCO, simultaneous with Titan's closing of the purchase. Documents relating to the transaction, including $15 million in cash, were placed into escrow last week. The sale-leaseback transaction was structured to deleverage Titan's acquisition of APPCO, the company stated.
In related news, NewGen Technologies Inc. has entered into a consulting agreement with Titan Global Holdings, effective upon its completed acquisition of APPCO.
"NewGen is strategically positioned to be the leader in renewable and environmentally friendly biofuel supply and distribution from our own fuel terminals out to wholesale and retail under one umbrella in the Southeastern United States," NewGen chairman and CEO Bruce Wunner said in a statement. "The completed agreements provide us with ongoing revenue and the exclusive right to supply biofuels long-term to APPCO, which was a synergy we sought at the time we initially bid for APPCO."
Other key details of the agreement include:
-- NewGen will receive $600,000 annually to provide advice on strategic and operational business matters on biofuels and related areas.
-- NewGen's fuel distribution subsidiary ReFuel America will be the exclusive long-term supplier of biofuels for APPCO.