Tel Aviv, February 12th 2007. Delek Group (TASE: DLEKG) reports that its subsidiary, Delek US Holdings, Inc. (NYSE: DK) (“Delek US”), announced today that its wholly owned subsidiary company MAPCO Express, Inc., (“MAPCO”), signed a definitive agreement for the purchase of 107 retail fuel and convenience stores from Calfee Company of Dalton, Inc. based in Dalton, Georgia. Within the framework of the agreement MAPCO will acquire the ownership rights to 71 stations and the lease rights to 36 stations for approximately $65 million (excluding inventory). If and when this agreement is completed, Delek US will operate more than 500 gasoline stations and convenience stores throughout the USA.
The gasoline stations and convenience stores are located in eastern Tennessee and northern Georgia. The convenience stores are operated under the trade name “Favorite Markets”.
Delek US intends to finance the purchase with a combination of available cash from its initial public offering completed in May 2006 and additional borrowings. The closing is subject to customary closing conditions and government approvals.
The Company holds approximately 77.4% in Delek US, a publicly traded company on the NYSE.
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