CALGARY, Canada — Parkland Fuel Corp., through its Parkland USA subsidiary, is further its U.S. footprint with the acquisition of Tropic Oil Co. Inc.
Headquartered in Miami, Tropic Oil transports, distributes and markets a full range of fuels and lubricants across the central and south Florida region. It also supplies and operates nine cardlock facilities and four bulk storage plants and warehouses.
Through Tropic Oil, Parkland is adding its third regional operating center (ROC) and expanding its presence into the southeastern states for the first time.
"Tropic Oil is Florida's preferred supplier of marine diesel and lubricants, and is highly regarded for its ability to provide consistent, reliable service throughout the central and south Florida markets," said Doug Haugh, president of Parkland USA. "This new Southeast ROC will be the operating platform that drives organic growth and enables further acquisitions across the region, while leveraging our business with Sol."
As part of the deal, Parkland will acquire all of the issued and outstanding equity interests of Tropic Oil, as well as equity interests and certain assets of its affiliates. It will be funded by cash flow from operations and existing credit facility capacity.
Pro forma the acquisitions, Parkland expects annual run-rate adjusted EBITDA of approximately $60 million. The transaction is expected to close on Oct. 1 and is subject to customary closing conditions.
"The Tropic Oil acquisition continues on our U.S. growth strategy by adding quality regional operators in regions where we can bring a distinct supply advantage," said Bob Espey, president and CEO of Parkland. "This initial toehold in Florida also complements our Caribbean business by providing significant supply and distribution synergy potential. We welcome Steve Gorey from Tropic Oil's leadership team and the rest of their employees into Parkland."
Canada-based Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator servicing customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.