U S X P - should get action today
Universal Express Announces Agreement To Purchase Jacksonville, Florida `Megastation' Oil And Gas Distributor
NEW YORK, Jul 19, 2006 (BUSINESS WIRE) -- Universal Express Inc. (OTCBB: USXP), has announced the signing of an agreement to purchase Jacksonville Oil Company LLC, a North Florida oil and gas retailer. The company, located in Jacksonville, is comprised of eight super stations that include both mini-marts and numerous co-branding agreements. In calendar year 2005, the Company had in excess of $20,000,000 in gross sales. The first 2 quarters of 2006 shows a substantial increase over the same time period of 2005.
"At current levels," said Richard A. Altomare, President and CEO of Universal, "we will see a benefit in excess of $1,000,000 in EBITDA from this purchase."
The purchase price is $15,800,000, subject to the Company obtaining an appropriate first mortgage on the properties. An escrow deposit of $250,000 was paid by the Company, subject to the completion of due diligence within 90-days.
"The acquired company is one of the best-managed, cleanest, high-tech operations we saw in viewing potential acquisitions in this industry," said Mr. Altomare.
Universal Express Inc. has targeted the fuel distribution sector recently as a result of its decision to vertically integrate its luggage delivery, courier, and aircraft operations. In March of this year the company announced a letter of intent to purchase a large, South Florida-based retailer and "jobber." This acquisition is pending.
"We expect to affect a substantial increase in revenues from the Jacksonville properties and through the introduction of some of Universal's existing services and products into the stations," said Mr. Altomare. "Further, as our Florida presence grows we want to introduce the same corporate and community responsibility here as we have in corporate central as well as our other subsidiaries and partners," he further stated.
About Universal Express
Universal Express, Inc. is a 22 year old logistics and transportation conglomerate with multiple developing subsidiaries and services. For additional information please visit www.usxp.com.
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