USA: EZ Sells 91 Sites to International Buyer
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Monday, 23 July 2012 |
EZ Energy has agreed to sell its 91 convenience stores to an unnamed foreign fuel retailer. The company announced details of the $64m deal, which will be used to pay down the company's debts and cover any losses on closing during September.
EZ Energy owes $17m to a US Bank and Israel's Mustang Mezzanine Fund, while bondholders are owed $26m. The transaction will result in a $10m capital gain after repayment of debts. Founded in 2006, EZ Energy operated stores in Pennsylvania and Ohio, booking reported losses of $5m in 2011.
President and CEO Gregg Budoi said it would be "premature" to disclose the name of the buyer. "We've signed an agreement with a closing date scheduled for Saturday, September 15, with an outside date of October 15," he added.
"Effectively, the buyer is buying all of our operating assets... we will see what we're going to do after that and if we're going to get into a new venture or continue on [as a retailer], but clearly that would require us to get some more stores," continued Budoi.
PetrolWorld 23072012
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