More Israeli funds buy into US retail petrol outlets and convenience stores

Gibor Real Estate Ltd became Adiron Investments Ltd who were listed on the Tel Aviv stock exchnage and changed their name to EZ Energy Ltd( 28 Bezalel St. Ramat Gan, 52521 Israel Ticker EZ ) when control passed to Eli Zahavi lst year a man with 30 years experience in the international oil industry. He has specialized in leading the research, marketing and operations activities for leading oil companies in several countries mainly in the US..

The company's declared policy is to locate and purchase clusters of service stations in the US. The strategy is to locate clusters that ensure high yields, and at the same time try to introduce financial partners. This way, the company plans to purchase a large number of gas stations using relatively small equity to complete the acquisition.

The company reported in January that the directorate has authorized contacts with underwriters to lead a private issue of bonds and options.

The first deal appears to be agreements to purchase 15 convenience stores on the East Coast of the United States for US$15 million on January 3rd.

On January 30th they were able to report acquiring 26 gas stations and convenience stores for US$26 million and an extra figure to cover the current inventory in the stores. Annual revenue from the properties reaches US$87 million and is generated, among others, from selling close to 100 million liters of fuel products.

Over the last weekend EZ Energy signed two deals for the purchase of another 40 gas stations in the US Midwest totalling US39 Mn. This adds another annual $140 Mn in revenues and net profit of US$6.3 Mn. to the stations bought in January.

Oren Zahevi the Chairman said "We are working vigorously to locate additional groups of stations, and we believe that we will sign additional deals in the new future."

This appears to reflect the policy of Alon USA the subsidiary of Alon Israel Oil Co. who last year bought into 55 convenience stores in El Paso to add to 49 stores they already owned in West Texas. (IPO's at US 16 mid 2005 when Lord Patel told you ter fill ya boots now in the US$32 range and have hit US$40)