CALGARY, Canada — Less than a month after it inked a deal to purchase Sevier Valley Oil Co. Inc., Parkland Corp. is continuing to build its presence across the United States with two more acquisitions.
Parkland USA, a wholly owned subsidiary of Parkland Corp., will acquire:
- The assets of Bozeman, Mont.-based Story Distributing Co., a retail and commercial fuel business, and its affiliates. The deal adds scale and density to Parkland's existing Northern Tier Regional Operating Center (ROC) and expands its presence in the high-growth Montana and Idaho markets.
- The assets of wholesale and commercial fuel distributor Carter Oil Co. Inc. and its affiliates, based in Flagstaff, Ariz. The deal complements Parkland's existing Utah and Arizona operations within its Rockies ROC and expands its presence in the high-growth northern Arizona region.
In total, the acquisitions will include 13 retail sites with strong non-fuel contribution, approximately 40 retail dealers as well as commercial fuel and lubricant distribution capabilities. The deals are expected to add annual fuel and petroleum product volume of approximately 275 million liters to Parkland's U.S. segment.
"We continue to build momentum in the U.S. and advance our growth strategy," said Doug Haugh, president of Parkland USA. "These acquisitions expand our presence in high-growth regions and provide additional opportunities to leverage our On the Run convenience store brand and increase our supply and distribution capabilities. We see an attractive pipeline of opportunities and are well positioned for further growth."
The acquisitions are at valuation metrics consistent with Parkland's prior U.S. transactions and will be funded with cash on hand and existing credit facility capacity.
Subject to customary closing conditions, the transactions are expected to close in the fourth quarter of 2020 (Carter Oil) and in early 2021 (Story Distributing).
Canada-based Parkland is an independent supplier and marketer of fuel and petroleum products. It is a leading convenience store operator in Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.