Assaf Eisenstein
Israeli firm purchases 74 US gas stations
GPM Investments, daughter company of Levi Kushnir’s GMUL Energy Ltd, signs deal to purchase 74 gas stations in Delaware east coast for USD 58.8 million; ‘energy sector is very hot, and it's possible to obtain excellent values for companies in it,’ Kushnir says
GPM Investments, a daughter company of Tel Aviv-based GMUL Energy Ltd, has signed a deal to purchase 74 gas stations in Delaware, Maryland, Virginia, New Jersey and Pennsylvania for USD 58.8 million.
Last month GMUL Energy, an investment group controlled by Levi Kushnir, purchased a majority ownership in GPM, operators of approximately 200 Fas Mart and Shore Stop convenience stores on the East Coast of the United States.
Kushnir's group will own 51 percent of the company; 33 percent will remain with GPM and another 16 percent of shares will be public. GMUL is a publicly-traded company on the Israeli Stock Exchange.
GMUL Energy CEO Assaf Eisenstein said “the deal was struck in the framework of our growth strategy and we will near USD 1 billion in sales in 2007.
“In our opinion, GPM's talented executive and management team can operate a large number of additional c-stores and gas stations within the current cost structures. This will allow GPM to maximize its existing capacity and will strengthen our position with suppliers."
'I think we made an excellent deal'
Fuel is supplied to the GPM stations by Valero Energy Corp.
Last month two investment firms controlled by Kushnir purchased 51 percent of GMUL Energy Ltd. for a reported USD 27 million. He told Globes Online,
"I think we made an excellent deal with the acquisition of US gas stations,” he was quoted by Globes Online as saying.
“If the chain, which was once on the verge of bankruptcy, has reached an EBITDA of USD 8 million to USD 10 million two years later, this is an excellent situation indicating the capabilities of its management. We're going to pay full attention to GPM. The agenda will include the acquisition of another chain and going public in the US. The energy sector is very hot, and it's possible to obtain excellent values for companies in it."
