Parkland CEO to Step Down
CALGARY, Alberta — Parkland Corp. President and CEO Bob Espey will step down after 15 years of leading the company. He will stay on in the role until Parkland's board of directors appoints a new CEO, the completion of the company's strategic review, or until Dec. 31, whichever comes first.
"On behalf of the board, I would like to thank Bob for his vision and leadership over the last 15 years as president and CEO," said Michael Jennings, Parkland's previous board chair. He was named executive chair effective immediately. "Bob has led Parkland through a period of exponential growth, transforming the company from a small regional fuel retailer into one of Canada's leading fuel and convenience retailers with international operations in 26 countries. We thank him for his unwavering commitment and dedication."
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Espey's planned departure accompanies a period of dissent among some of its investors. Earlier this year Simpson Oil Ltd., Parkland's largest shareholder, won a court ruling freeing it from voting and standstill restrictions required by a 2019 governance agreement. Weeks later, Parkland announced it would launch a strategic review process that would include analysis and evaluation of the company's business strategies and optimization opportunities, as well as consideration of value maximization alternatives that are in the best interests of all shareholders. Those alternatives include, but are not limited to, asset divestments, acquisitions, transformative business combinations and a sale of the company.
On April 7, Simpson sent a letter to all Parkland shareholders announcing its intention to nominate nine new members of the board to replace incumbent directors. Simpson accused Espey of having an "undisciplined M&A [merger and acquisition] strategy, poor integrations and runaway spending." Parkland countered by calling Simpson's nomination slate an attempt to seize full control of the company without paying a control premium.
Parkland's board of directors has already formed a CEO search committee comprising independent directors who will oversee an extensive executive search process to select a qualified candidate to replace Espey, the company said.
"Serving as Parkland's CEO has been the opportunity of a lifetime. I want to thank the entire Parkland team — past and present — for their incredible dedication and drive. I am proud of what we have built together," Espey said. "Over the past few months, it became clear that stepping down and announcing my departure may help bring resolution to the situation with Simpson Oil Ltd. and benefit all shareholders. I remain deeply committed to Parkland and will support a smooth transition to new leadership. I look forward to working closely with Michael in his new role as executive chair."
As executive chair, Jennings will provide continued leadership to the board while remaining focus on the governance and delivery of a disciplined strategic review process, according to Parkland. The process is being led by a special committee of experienced directors and supported by Goldman Sachs Canada and BofA Securities.
Calgary-based Parkland Corp. is an independent supplier and marketer of fuel and petroleum products and a convenience store operator. Parkland currently services customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.