Parkland Fuel to Double Its U.S. Operations via Acquisition
ALBERTA, Canada — Parkland Fuel Corp. inked an agreement to acquire all of the issued and outstanding equity interests of Rhinehart Oil Co. Inc.
The move comes through its U.S.-based subsidiary Parkland USA.
Based in American Fork, Utah, Rhinehart and its affiliates operate retail, commercial and lubricant businesses in Utah, Colorado, Wyoming and New Mexico.
In total, Rhinehart operates and supplies four cardlock facilities, nine retail sites, and markets and distributes fuels, lubricants and specialties through 10 distribution facilities. The company distributes approximately 72 million gallons of fuel and lubricants per year.
"The Rhinehart acquisition represents a significant expansion for Parkland," said Bob Espey, president and CEO of Parkland. "Rhinehart has an excellent business and asset base that will serve as a platform for growth in Utah, Colorado and neighboring states. We are excited to welcome Dave and John Jardine from the Rhinehart leadership team and the rest of the Rhinehart employees to the Parkland team."
The acquisition is expected to close on or about Aug. 27, and is expected to be funded with cash flows and capacity under Parkland's existing credit facility. The deal is subject to customary closing conditions.
"Rhinehart is a prominent fuel distributor and a well-scaled and -respected ExxonMobil lubricants distributor," said Doug Haugh, president of Parkland USA. "The addition of Rhinehart to the Parkland USA team provides us with the talented staff and scalable infrastructure we need to establish our regional operations center (ROC) for the Rocky Mountain tributary. This ROC will be the operating platform that drives organic growth and enables further acquisitions across the region that can leverage substantial existing capacity within their current rail hubs, bulk storage terminals, and warehouses."
Alberta-based Parkland services customers through three channels: retail, commercial and wholesale. Parkland optimizes its fuel supply across these three channels by operating the Parkland Burnaby Refinery, and leveraging a growing portfolio of supply relationships and storage infrastructure. Its retail banners include On the Run/Marché Express.