Prime Fuel Enterprises: Entering the Fuel and Convenience Sector

Prime Fuel Enterprises (2021): Entering the Fuel and Convenience Sector
In 2021, Tyler led Legacy Venture Acquisitions into the fuel and convenience industry with the acquisition of Prime Fuel Enterprises, a high-traffic gas station with an attached convenience store located in a rapidly growing urban area. This move was part of Tyler’s strategy to diversify Legacy’s holdings into essential services with consistent demand. Fuel stations with convenience stores are known for their stable revenue, as they provide necessary products and services to a large customer base, regardless of economic fluctuations.

The Opportunity in Fuel and Convenience
Prime Fuel Enterprises was strategically located in an area with high commuter traffic and an increasing population. The gas station was a well-known local spot but had untapped potential due to underutilized space, lack of premium offerings, and outdated equipment. Tyler saw Prime Fuel as an ideal acquisition with room to expand into additional revenue streams, increase customer retention, and capitalize on high traffic volumes.

Deal Structure and Financing
Tyler structured the acquisition with a mix of asset-backed lending and seller financing. The station’s real estate and equipment provided the collateral needed to secure favorable loan terms, and the seller agreed to finance part of the deal based on the existing cash flow.

Key Deal Elements:

Asset-Backed Loan: Using the station’s property and equipment as collateral, Tyler secured a loan with low interest, reducing upfront costs.
Seller Financing: The seller financed a portion of the acquisition, allowing Legacy to take control with minimal personal capital invested.
Operational Upgrades and Revenue Expansion
Once the acquisition was finalized, Tyler focused on upgrading operations and expanding the convenience store’s offerings to attract more customers and increase profit margins.

Fuel System Upgrade: Tyler invested in new fuel pumps and updated payment technology to improve the station’s efficiency, reduce waiting times, and provide a better customer experience.

Expanded Convenience Store Offerings: The convenience store was revamped to include premium products like fresh food, coffee, and specialty snacks, catering to both regular commuters and local residents. These higher-margin items improved the store’s profitability.

Marketing and Promotions: Tyler introduced discount programs and loyalty rewards for repeat customers, boosting customer retention. Monthly promotions, such as discounts on gas and bundled offers in the convenience store, drove increased foot traffic.

Alternative Fuel Options: Recognizing the shift toward electric vehicles (EV), Tyler laid the groundwork for installing EV charging stations, which positioned Prime Fuel to serve a new customer base and future-proof its offerings.

Financial Success
Within a year, Prime Fuel Enterprises saw a 30% increase in revenue, with the convenience store contributing significantly to the station’s profitability. The addition of premium offerings and loyalty programs increased customer retention, and the station’s enhanced service options solidified it as a go-to spot for the local community.