Titan Global Holdings, Inc. and NewGen Technologies have completed a biofuels supply agreement.
This became effective upon Titan's acquisition of Appalachian Oil Company (Appco) on September 12, 2007.
Titan, a holding company, recently formed Titan Global Energy (Titan Energy), a division engaged in the acquisition and management of complementary energy sector assets. Appco is the first acquisition of Titan Energy, which will seek future acquisitions to compliment Appco's existing retail and wholesale distribution footprint.
Last week Titan issued revenue guidance for fiscal 2008. Titan Global Energy is expected to contribute $433 million to Titan's stated overall revenue guidance of $747 Million for fiscal 2008.
Under the agreement with NewGen, ReFuel America, Inc., a wholly owned subsidiary of NewGen, will be a supplier of biofuels for APPCO. The term of agreement is 10 years with the right to supply biofuel products to Appco at the prevailing market price for such biofuel products at the time an order is placed.
Appco, formed in 1923 and based in Blountville, Tennessee, is a privately held petroleum company that owns and operates an extensive petroleum product distribution network that generated $403 million in revenues for fiscal 2006. Appco distributes petroleum products to more than 160 dealers in the southeastern United States and owns and operates 56 convenient store locations. Appco has more than 550 employees and maintains long standing partnerships with strategic terminal operators and major oil companies.
"The access to these additional sources of biofuels will help us lead Appco's markets in the distribution of such products," says David Marks, chairman of Titan Global Holdings. "Titan's initiatives in the energy sector are consistent with Titan's unwavering commitment to the creation of shareholder value. This agreement leverages our financial and management strength with the biofuel know-how of NewGen."
"Titan's senior management is committed to the utilization of Appco's extensive distribution channels into 55 retail and 165 dealer accounts to distribute environmentally friendly biofuels while earning higher profit margins," says Bryan Chance, chief executive officer of Titan Global Holdings. "These additional supply sources will enable us to increase revenues and earnings in the energy sector. As well, we will continue to search for strategic opportunities in the dynamic energy sector."