Nice news.
Petroleum Consolidators of America Completes First Acquisition
Expected to Generate $2.5 - $3.0 Million in Revenue in First 12 Months
WEST PALM BEACH, Fla.--(BUSINESS WIRE)--Petroleum Consolidators of America, Inc. (Pink Sheets:PCAI), a targeted, gasoline station and facilities consolidator, announced today that it has completed the first of a series of retail gasoline station acquisitions expected to close in 2007.
The first consolidated gas station under the Petroleum Consolidators of America umbrella is strategically located on a major thoroughfare in Ft. Lauderdale, Florida. The property, branded as a Valero station (NYSE:VLO), includes a high margin convenience store, is currently cash flow positive, and is expected to be immediately accretive to PCAI earnings.
Petroleum Consolidators of America President and CEO David Cohen said, “As our company continues its forward momentum that began earlier this year, to implement a comprehensive, strategic consolidation strategy focused on the highly-fragmented gasoline station and convenience store industry, we are truly pleased to have secured our first location in one of the fastest growing areas of South Florida.”
Cohen continued, “This particular facility has already proven to be profitable with an established, well known gasoline provider (Valero), and a high traffic convenience store. Based on the facility’s historical financial results and the expected benefits of consolidation, we are projecting that this facility will generate between $2.5 - $3.0 million in revenue within the first twelve months of consolidation.”
Petroleum Consolidators of America recently announced that, as part of its comprehensive roll-up strategy, the Company expects to acquire at least six retail gasoline facilities in 2007. These six acquisitions are expected to generate $22 million in revenue and $2.3 million in income. Due to land, business and environmental reviews, typical gasoline station acquisitions require a four to six-month due diligence process from first review to final closing.
About Petroleum Consolidators of America, Inc.
Petroleum Consolidators of America, Inc. (Pink Sheets:PCAI) is implementing a targeted roll-up strategy to create a portfolio of consolidated retail gasoline stations in the southeast that will benefit from substantial operating efficiencies and rapid market acceptance as a result of acquisition.
The Company expects to acquire profitable gasoline businesses that include convenience stores and other branded offerings, including ancillary products and services, such as grocery and car care products, tobacco, beer, soft drinks, self-service fast food, publications, money orders and other services, and will implement strategic directives to benefit all facilities under the Petroleum Consolidators umbrella.
For more information, visit www.petroleumconsolidators.com
Safe Harbor Statement
This release contains various forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended which represent the company’s expectations or beliefs concerning future events of the company’s financial performance. These forward-looking statements are further qualified by important factors that could cause actual results to differ materially from those in the forward-looking statements. The words “may,” “could,” “should,” “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan” and similar words are intended to identify forward-looking statements. These forward-looking statements are based on the Company's current plans and expectations and involve a number of risks and uncertainties that could cause actual results and events to vary materially from the results and events anticipated or implied by such forward-looking statements. Any number of factors could affect actual results and events, including, without limitation: the ability of the Company to take advantage of expected synergies in connection with acquisitions; the actual operating results of stores acquired; the ability of the Company to integrate acquisitions into its operations; fluctuations in domestic and global petroleum and gasoline markets; changes in the competitive landscape of the convenience store industry, including gasoline stations and other non-traditional retailers located in the Company's markets; the effect of national and regional economic conditions on the convenience store industry and the markets we serve; the effect of regional weather conditions on customer traffic; financial difficulties of suppliers, including our principal suppliers of gas and merchandise, and their ability to continue to supply our stores; environmental risks associated with selling petroleum products; governmental regulations, including those regulating the environment; and acts of war or terrorist activity. Results actually achieved may differ materially from expected results included in these statements. The Company is under no obligation to, and expressly disclaims any such obligation to, update or alter its forward-looking statements, whether as a result of new information, future events or otherwise. Furthermore, this Company cautions that the risk factors listed in this paragraph are not exhaustive.
