HOUSTON, Jan. 16, 2008 (PRIME NEWSWIRE) -- BlueStar Health, Inc. (Pink Sheets:BLSH) announced today that the Company's Zeon Fuel subsidiary has, pursuant to a Letter of Intent that was announced on December 11th, 2007 and a Definitive Agreement signed earlier this week, acquired a retail truck stop and convenience store operation located near the intersection of US 59 (Eastex) and Highway 8 near the George Bush International Airport in Houston, Texas.
The truck stop, which sells gasoline through 12 pumps on 3 "islands" and diesel fuel through 4 pumps on 4 "islands" under the Shell(tm) brand -- property of Royal Dutch Shell Plc -- is located on a 3.5 acre corner lot at the intersection of two major freeways servicing the International Airport area and features a 4,900 square foot convenience store facility.
The newest addition to the Zeon Fuel portfolio exhibits business metrics opportunity in-excess of targeted levels set by Zeon management to qualify for acquisition consideration under the company's "growth at a reasonable price" roll-up plan. Furthermore, Zeon Fuel management anticipates that within the first year of operation, the location will increase sales to close to 4 million gallons of fuel or approximately $12 million in gross revenue at today's prices and $1 million in convenience store sales annually on a rolling 12-month basis.
Richard Greenwood, President and CEO of BlueStar commented, "We are delighted to have closed the first-of-a-number of prospective locations in our evaluation pipeline. While the business diligence and transaction process took a bit longer than we originally anticipated for this transaction, we believe that we will be able to incrementally speed up the process with every successive acquisition candidate going forward." He continued, "We are in advanced discussions with a number of other locations, including multi-location operations, and would expect to see acquisition activity pick up markedly in the near future."
"The current level of activity is behind where we expect it to be in as short a time as two months from now but with tactics and programs we have employed at other locations we will see very positive improvements right away," stated Naved Jaffrey, Chairman of BlueStar. "We will immediately begin the process of upgrading food services at the location in addition to improving amenities in the truck driver rest area to deliver a better customer experience. We are also outlining a comprehensive initiative aimed at increasing operational efficiencies at the location that will incrementally benefit the bottom line and our ability to scale sales in the future."
Biodiesel Fact: Biodiesel has the highest energy content (BTUs) of any alternative fuel and is comparable to No. 1 diesel.
About BlueStar Health
BlueStar, through its wholly-owned subsidiary, Zeon Fuel, Inc., is engaged in the business of blending purchased bio-diesel and petroleum diesel fuels and distributing the blended product through retail outlets. The company intends to expand its distribution through owned and leased facilities as well as fuel contracts with retail outlets. For more information on BlueStar's primary operating entity, Zeon Fuel, Inc., please visit www.zeonglobalenergy.com
Forward-Looking Statements
This news release includes comments that may be deemed forward-looking within the meaning of the safe harbor provisions of the U.S. Federal Securities Laws. These include, among other things, statements about expectations of future events or transactions, sales of products or performance. Forward-looking statements are subject to risks and uncertainties that may cause the company's results to differ materially from expectations. These risks include the company's ability to execute its business plan, having necessary financing in time to meet contractual obligations and support the business activity, and other such risks as the company may identify and discuss from time to time, including those risks disclosed in the company's current and future filings with the Securities and Exchange Commission. Accordingly, there is no certainty that the company's plans will be achieved.