EZ Energy Buys 13 US Gas Stations For $12.7m

Globe

The company previously bought 40 gas stations and convenience stores for $37 million in March and April.

EZ Energy Ltd.is expanding its business in the US. The company has signed a contract to buy 13 gas stations and convenience stores in the US for $12.7 million plus an as yet undecided amount for inventory. The company promised to operate the convenience stores and gas stations for 20 years under the seller’s brand and franchise, and to rebrand 12 of the stores at a cost of $2.5-3.7 million. The company will pay a one-time franchise fee of $30,000 per store ($360,000 altogether), plus 8% of the stores’ turnover. The name of the seller was not disclosed.

EZ Energy said that the convenience stores posted $12.9 million revenue and the gas stations sold 31.6 million gallons in 2006, less than their sales in 2005.