Parkland to Divest Florida Business
CALGARY, Alberta — Parkland Corp. will exit Florida after initiating a process to divest its retail and commercial businesses within the state.
"This disposition reflects our commitment to direct capital towards our highest return opportunities and maximize shareholder value," said Bob Espey, Parkland president and CEO. "We remain deeply committed to our northern U.S. business, which is performing well and has strong connectivity with Canada."
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Parkland noted during its most recent earnings call that its Florida retail and supply businesses remained an ongoing area of focus that had yet to reach their full potential, as Convenience Store News reported.
In its divestment announcement, the company noted that it continuously reviews all parts of its portfolio, and that while its Florida improvement plan is on track, Parkland has more accretive investment opportunities in other parts of the business that can deliver stronger financial returns and growth.
Parkland added that it remains focused on improving returns and increasing cash flow through disciplined capital allocation. By divesting noncore assets, the company will continue to focus on areas with the highest growth potential and strongest synergies with its core business.
The company's Florida business includes approximately 100 retail sites, nine cardlock facilities and four bulk storage plants and warehouses. There are reportedly early indications of substantial business in the Florida assets, and Parkland expects to complete this disposition within the next 12 to 18 months.
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The Florida divestment is part of Parkland's previously announced noncore asset divestment program, which it now expects will significantly exceed $500 million by the end of 2025. Parkland also expects to double cash flow per share to $8.50 and grow adjusted EBITDA to $2.5 billion by 2028 through continued organic growth, lowering costs and optimizing its supply advantage, the company said.
Parkland also expects to close the previously announced sale of its Canadian propane business during the fourth quarter of 2024.
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.