Able Energy, Inc., Files Form 8k Announcing Intent To Acquire GSN Interstate Truck Stop, Inc.
Rockaway, New Jersey (August 17, 2005) -- Able Energy, Inc. ("Able") announced that on Monday it filed a Form 8-K with the Securities and Exchange Commission disclosing that it has entered into an assignment agreement with Truck Stops Direct, Inc.("TSD") wherein TSD has assigned to the company all of its rights in an executed letter of intent to acquire GSN Interstate Truck Stop, Inc. ("GSN"). GSN is a service company that provides aggregating purchasing power and information to approximately 160 independent truck plazas.
Able intends to complete this acquisition for a total amount of $2 million dollars with a combination of cash and stock. Thereafter, in conjunction with a joint venture arrangement with All American Plazas, Inc., ("AAP"), an affiliate of TSD, which operates a similar business as GSN to approximately 150 independent truck plazas, Able would convert the majority, if not all, of these locations into additional distribution outlets for its home heating oil business.
This joint venture, which would be either a co-branding or licensing arrangement, would also provide Able and AAP, through their relationship with their primary petroleum supplier, the ability to sell diesel fuel and gasoline as well as other products and services to the approximately 160 independent truck plazas currently served by GSN in addition to the approximately 150 independent truck plazas currently served by TSD.
Able should benefit from these arrangements by the substantial increase in its distribution network for the sale of home heating oil. In addition, Able would receive a portion of revenue generated in conjunction with its primary petroleum supplier from the sale of petroleum products.
Commenting on this acquisition, Christopher Westad, Able Energy’s President and Interim CEO, stated, "Able Energy is looking forward to growing our business through this acquisition. The business arrangement that this acquisition provides in conjunction with Truck Stops Direct will enable the Company to expand its distribution network for the sale of home heating oil."
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".
For information contact Christopher P. Westad, President (973) 625-1012