Titan Global Holdings, Inc. (Titan) (OTCBB:TTGL), a high-growth diversified holding company, announced today that Appalachian Oil Company ("Appco"), a unit of Titan Global Energy, has affirmed a milestone agreement with leading international ethanol manufacturer Tate & Lyle to supply significantly increased quantities of Ethanol at reduced price levels for calendar 2008.
The agreement is a foundational achievement in Titan's strategic plan to source and distribute 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.
Upon Titan's acquisition of Appco, Appco and Refuel America, Inc. ("Refuel") completed a definitive biofuel supply agreement. Refuel's product line includes domestic and internationally produced and environmentally friendly alternative fuels. Refuel's supply of biofuels to Appco will be complementary to those of Tate & Lyle.
Titan recently formed Titan Energy to pursue the acquisition and management of complementary energy sector assets. Appco, the division's first acquisition, is a Blountville, Tennessee-based energy company that owns and operates an extensive petroleum product distribution network.
Tate & Lyle, based in London, is one of the world's leading manufacturers of renewable food and industrial ingredients, with approximately $6 billion in annual revenues.
This agreement is the latest execution of the strategic vision set forth by Titan Energy to expand its biofuel product lines and revenues through strategic agreements and acquisitions. These agreements are expected to enhance Titan's core profitability at wholesale and retail distribution, as well as further Titan Global Holdings' mission and commitment to environmental responsibility across its various divisions and business units.
Tate & Lyle uses innovative technology to transform corn and sugar into value-added ingredients for customers in the food, beverage, pharmaceutical, cosmetic, paper, packaging, and building industries.
Titan Energy has and will continue to capitalize on initiatives within the energy sector that can provide significant opportunities for revenue and earnings growth. Titan is seeking acquisitions to complement Appco's existing retail and wholesale distribution footprint, which currently reaches more than 160 petroleum and fuel product dealers in the southeastern United States, along with its 56 convenience store locations.
"During our due diligence of Appco, the management team laid out its strategic vision for the future of the industry," said Bryan Chance, President and Chief Executive Officer of Titan Global Holdings. "The second strategic objective for Titan Energy was to preserve and expand the supply of biofuels products through strategic agreements that would enhance core profitability at the wholesale and retail distribution levels. With this milestone agreement, we have begun to fulfill these objectives."
"Randall Tankersley and our supply chain team did an outstanding job over the last six months of expanding our relationship with Tate & Lyle and solidifying our access to these important biofuels," said Marty Anderson, President and Chief Executive Officer of Appalachian Oil Company. "Our biofuel agreements will fortify our position as a leading renewable energy provider in the southeast United States. Additionally, increased access to these biofuels will enhance our sales efforts as we are diligently adding dealer accounts in our existing markets and new markets as well."
Last week Titan issued updated revenue and earnings guidance for fiscal 2008. Titan Global Energy is expected to contribute $433 million to Titan's stated overall revenue guidance with a range of $735 to $747 Million for fiscal 2008.
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.
Appco's strong revenue base and storied 84-year history provides Titan with an ideal platform company for further expansion of its energy efforts. Furthermore, Appco's management team has more than 125 years experience in the petroleum and convenience store industry. Titan will preserve and leverage Appco's industry-leading management team.
About Tate & Lyle
Tate & Lyle is a world leading manufacturer of renewable food and industrial ingredients. It uses innovative technology to transform corn and sugar into value-added ingredients for customers in the food, beverage, pharmaceutical, cosmetic, paper, packaging and building industries. The Company is a leader in cereal sweeteners and starches, sugar refining, value added food and industrial ingredients, and citric acid. Tate & Lyle is the world number-one in industrial starches and is the sole manufacturer of SPLENDA® Sucralose.
Headquartered in London, Tate & Lyle is listed on the London Stock Exchange under the symbol TATE.L. In the US, its ADRs trade under TATYY. The Company operates more than 50 production facilities throughout Europe, the Americas and South East Asia. In the year to 31 March 2007, it employed 6,900 people in its subsidiaries with a further 2,300 employed in joint ventures. Sales in the fiscal year ended 31 March 2007 totaled £4.0 billion. Additional information can be found on http://www.tateandlyle.com.
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.
For more information, please visit: www.titanglobalholdings.com.
For investor-specific information and resources, visit http://www.trilogy-capital.com/tcp/titan/ or http://www.b2i.us/irpass.asp?BzID=1314&to=ea&s=0.
To view current news, visit http://www.trilogy-capital.com/tcp/titan/quote.html. To view an investor fact sheet about the company, visit http://www.trilogy-capital.com/tcp/titan/factsheet.html.
Forward-Looking Statements
Safe Harbor Statement Under the Private Securities Litigation Act of 1995 -- With the exception of historical information, the matters discussed in this press release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of TTGL could differ significantly from those statements. Factors that could cause actual results to differ materially include risks and uncertainties such as the inability to finance the company's operations or expansion, inability to hire and retain qualified personnel, changes in the general economic climate, including rising interest rate and unanticipated events such as terrorist activities. In some cases, you can identify forward-looking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "estimate," "predict," "potential" or "continue," the negative of such terms, or other comparable terminology. These statements are only predictions. Although we believe that the expectations reflected in the forward-looking statements are reasonable, such statements should not be regarded as a representation by the Company, or any other person, that such forward-looking statements will be achieved. We undertake no duty to update any of the forward-looking statements, whether as a result of new information, future events or otherwise. In light of the foregoing, readers are cautioned not to place undue reliance on such forward-looking statements. For further risk factors see the risk factors associated with our Company, review our SEC filings.
