Able Energy, Inc. Files Form 8-K Announcing Acquisition Of All American Plazas Inc.
Rockaway, New Jersey (June 17, 2005) -- Able Energy, Inc. ("Able") today announced that it has filed Form 8-K with the Securities and Exchange Commission detailing the terms of a definitive agreement to acquire the outstanding stock of All American Plazas, Inc. ("AAP"), a privately held company headquartered in Myerstown, Pennsylvania. All American Plazas owns and operates interstate travel centers in four Northeastern States with annual revenues in excess of $131 million for its fiscal year ending September 30, 2004. The initial terms of the agreement call for Able to pay $35,000,000 for AAP through the issuance of 11,666,667 shares of restricted Able common stock at a per share price of $3.00 to the current shareholders of AAP. In addition, AAP will receive an additional $10,000,000 in $3.00 restricted stock if All American successfully completes a refinancing arrangement by December 31, 2005. (This separate refinancing agreement will provide All American with approximately $35,000,000 to be used to restructure existing debt at a lower interest rate as well as provide working capital for AAP.) Additional details of this planned acquisition can be found in a Form 8-K, which was filed on June 16, 2005 with the S.E.C. Completion of this transaction is subject to approval by the shareholders of Able. Once the acquisition is completed, All American Plazas will be a wholly owned operating subsidiary of Able Energy, Inc.
Able believes that the combination of these two energy companies will create a new combined company that will have improved market opportunities for heating, diesel and other fuels along with greater financial market recognition with about $200 million in combined revenues. Currently, both All American Plazas and Able Energy are successful organizations with similar products within the all important energy sector. In a statement by Chris Westad, Able’s President and Interim CEO, "It just makes sense to bring these two successful energy companies together. All American Plazas has enjoyed growth along with improving operations in the vital Northeast travel center business supporting our nation’s truckers." Westad continued, "The combination of our two organizations will provide greater joint fuel buying opportunities, administrative economies of scale, and also form the platform for future energy related acquisitions."
Currently both Able and AAP enjoy joint sponsorship through a combined marketing arrangement with a major fuel supplier who not only provides fuel to both companies but also provides supply chain management. This arrangement is a key element in the combined companies business plan to build a virtual network to expand the companies fuel distribution business throughout the United States.
About Able Energy, Inc.
Able is a holding company for five operating subsidiaries, which are engaged in the retail distribution of, and the provision of services relating to home heating oil, diesel fuel, kerosene, and in addition, Able provides complete HVAC installation and repair.
Able’s common stock is traded on the Nasdaq SmallCap Market under the symbol "ABLE" and on the Boston Stock Exchange under the symbol "AEI".
The Private Securities Litigation Reform Act of 1995 provides a "Safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involved risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the company is detailed from time to time in the company's reports filed with the Securities and Exchange Commission.
For information contact Christopher P. Westad, President (973) 625-1012