Delek in Talks to Purchase 100 U.S. Stations

JERUSALEM -- The Delek Group's subsidiary, Delek Holdings US, is in advanced negotiations with an unnamed U.S. company to acquire 100 fuel stations, mostly in Alabama, for $50.6 million, reported the Jerusalem Post.

In a statement to the Tel Aviv Stock Exchange, Delek said the unnamed company generates some $200 million annually.

Delek informed its investors it will use its own resources to cover $24.6 million of the acquisition price, with the remaining $26 million coming from unspecified bank loans. Barring last-minute glitches, Delek expects to complete the negotiations this week, according to the news source.

This will not be the first U.S. acquisition for Delek. Israel's largest domestic fuel company paid $147 million for MAPCO Express of Tennessee, which operates 236 gas and service stations statewide.

Delek recently expanded its Tennessee holdings by seven service stations in a $12 million transaction. The US subsidiary generated more than $450 million in revenues last year, producing $77 million in 2003 gross profits, according to company figures.

Delek entered the U.S. market following Alon Israel Oil Co.'s August 2000 acquisition of the U.S. operations of Total Fina Elf SA, a French-based energy giant, in a deal worth $400 million. The assets purchased included oil refineries, 1,800 kilometers of fuel pipelines, six oil terminals and 1,700 gas stations under the Fina brand, in Texas, Oklahoma, Kansas, New Mexico, Louisiana, and Arizona. In 2001. Alon spent another $40 million to fully acquire 100 percent of Texas-based Southwest Convenience Stores LLC, a 7-Eleven operator.