Florida has the third most convenience stores in the United States; emerging gasoline retailing company, Petroleum Consolidators of America Inc. (Pink Sheets: PCAI), seems to be based in the right place as it executes more store consolidations.David Cohen, president and CEO of Petroleum Consolidators, told Market New First the company is working out the financial details to complete its third and fourth acquisitions. The company intends to complete a series of planned acquisitions in 2007.
“With our first two acquisitions behind us, strategic improvements and developments are occurring rapidly,” said Cohen. “Part of the business plan is owning real estate. As one of the components to what we do, that will allow us to own those sites … and to start gaining exposure on the west coast of Florida.”
The company focuses on the acquisition and ownership of strategically located stations, targeting stores that meet certain requirements, such as generating revenue on 100,000 gallons of gasonline per month; in-store sales of $35,000 per month; and a car wash bringing in a minimum of $5,000 per month.
“If there’s a store that happens to be mismanaged, but at one point was doing much larger numbers, we’ll entertain that,” said Cohen. “We know that we can improve and bring the numbers back up if it’s valued right.”
Each acquired location will undergo a merchandising program to ensure the store operates profitably and drives high volume. The company plans on creating an attractive and inviting retail environment following uniform standards to attract customers.
Gasoline station acquisitions are subject to environmental, land and business reviews and require a four to six-month due diligence process from initial review to final closing. Petroleum Consolidators expects to have the next two consolidations finalized in the next 60 days.
In April, the company announced positive news for its first consolidated gas station, reporting gas sales up 40 percent, and in-store sales up 35 percent.
Petroleum Consolidators mission is to become the largest publicly traded company on the East Coast. The company is working toward a generated gross sales revenue exceeding $150 million annually by 2010.
