Appco Further Expands Petroleum Distribution Footprint in Southeastern United States with Four New Wholesale Dealer Accounts
November 27, 2007
Titan Global Holdings, Inc. (OTCBB:TTGL), a diversified holding company, today announced continued wholesale growth in Appalachian Oil Company ("Appco"), Titan Global Energy's first strategic acquisition in the dynamic energy sector. Appco has added four new dealer wholesale accounts in North Carolina and Tennessee since Titan closed the acquisition in September 2007. This organic growth further expands Appco's petroleum distribution footprint in the Southeastern United States.
"We continue to offer wholesale customers access to petroleum products from a wide range of branded and unbranded sources," said John Thomas III, President of Sales and Marketing at Appco. "We will aggressively pursue continued opportunities to expand our geographic reach and increase market share in the markets we currently serve."
Appco, formed in 1923 and based in Blountville, Tennessee, is a leading petroleum company in the Southeast that owns and operates an extensive petroleum product distribution network that generated approximately $400 million in revenues for fiscal 2006. Appco distributes petroleum products to more than 165 dealers in the southeastern United States and owns and operates 56 convenience store locations. Appco has more than 550 employees and maintains long standing partnerships with strategic terminal operators and major oil companies.
"John's continued organic growth in distribution furthers our opportunities to lead our markets in the distribution of biofuels as well," said Marty Anderson, President and Chief Executive Officer of Appalachian Oil Company. "One of our key strategic initiatives is to leverage our established distribution network to enable energy independence and environmental responsibility in our markets and to increase returns for our shareholders. We have recently announced agreements to increase our access to biofuels and our organic growth is increasing the demand for these fuels."
Titan recently announced an expanded agreement with leading international ethanol manufacturer Tate & Lyle to supply increasing quantities of Ethanol at reduced price levels for calendar 2008. With this agreement, Appco has secured access to key biofuels to address the fast-growing demand for newer, more environmentally friendly fuel sources. As the nation increases its consumption of ethanol and other biofuels, Titan believes its supply agreement with Tate & Lyle will significantly advance the Company's efforts to establish secure sources of such biofuels and a higher margin product channel.
"The organic growth in Appco further validates our strategic interest in our first energy acquisition," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "Appco presented us with a strong distribution network of petroleum products in the Southeastern United States. As we work with our strategic equity partners to identify and integrate other energy assets, we have a strong team in place and tremendous opportunities for geographic expansion and vertical integration."
Titan recently reported updated revenue guidance projecting that Titan Global Energy will contribute $433 million to Titan's stated overall revenue guidance with a range of $735 to $747 Million for fiscal 2008.
About Titan Global Holdings
Titan Global Holdings is a diversified holding company with a dynamic portfolio of subsidiaries spanning international telecommunications, electronics and homeland security, consumer products and energy resources. Through our nine wholly-owned subsidiaries, we take advantage of valuable synergies between our subsidiaries to maximize revenue growth, internal development and strategic acquisitions. In fiscal 2006 Titan generated in excess of $109 million in revenues on a consolidated basis and projects fiscal 2008 revenues up to $747 million. Titan's operating divisions include the following:
Titan's Telecommunications Division addresses a range of high-growth markets in the telecommunications, wireless and mobile segments. Companies include Oblio Telecom, Inc., the second largest publicly-owned company focused on the international prepaid telecommunications segment, StartTalk, Inc., Pinless, Inc., Titan Wireless Communications, Inc. and Ready Mobile.
The Titan Global Energy Division aggregates traditional and next-generation energy and fuel assets that can provide significant opportunities for growth in one of the world's largest and most critical markets.
Titan Global Brands integrates, protects and expands brand management capabilities to leverage and optimize growth across Titan's worldwide distribution channels. We own or manage more than 100 brands that are distributed through efficient, overlapping and expansive distribution channels.
Titan Card Services capitalizes on the burgeoning multibillion dollar international prepaid money transfer sector. The Card Services division provides a seamless brand extension for Titan's growing family of prepaid products, currently sold through a nationwide network of more than 71,000 retailers.
Titan's Electronics and Homeland Security Division includes Titan PCB East, Inc. and Titan PCB West, Inc. These companies specialize in the manufacture of advanced circuit boards and other electronic products for classified military and defense department customers, and other high-tech clients.
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Forward-Looking Statements
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