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Tel Aviv-based Gmul Energy has agreed to buy 74 gas stations and convenience stores along the East Coast of the US for $50.8 million, the company said Sunday. The deal brings its US portfolio to 294 stations and stores, which Gmul runs through subsidiary company GPM, marking a growth of some 33 percent.
"These acquisitions are part of our growth strategy to achieve sales of $1 billion in 2007," said Asaf Eisenstein, chief executive officer of Gmul Energy.
The new stations are located in Delaware, Maryland, Virginia, New Jersey and Pennsylvania and have combined sales of more than $200m. per year, selling around 70 million gallons of gas.
The company also reached an agreement with gas supplier Valero to extend its existing agreement to provide the branding and equipment at the new stations and to purchase its gas from Valero.
Last week, Gmul said it had earnings before interest, tax, depreciation and amortization of $13.2m. in the second quarter of this year, compared to $8.5m. in the quarter in 2005.