Parkland to Nearly Double Its U.S. Retail Business via Acquisition
A deal with Urbieta Oil Co. includes 94 locations, 54 of which are strategic sites.
CALGARY, Alberta — Parkland Corp., through its wholly owned subsidiary Parkland USA, will pick up Urbieta Oil Co. and its certain affiliates, nearly doubling the company's U.S. retail business.
The deal includes 94 locations, including the real estate purchase of 54 strategic sites. It also complements Parkland's existing Florida commercial business by establishing a large retail and convenience growth platform with high-quality real estate in Miami, the company stated.
"This acquisition advances our growth strategy to increase our convenience retail presence in a region where we have had success with fuel supply and commercial operations," said Doug Haugh, president of Parkland USA. "Adding the Urbieta stores nearly doubles our U.S. retail business, provides immediate scale in a resilient, fast-growing market, and creates opportunity to meet customers' needs through our ON the RUN convenience brand."
Urbieta is family-owned and -operated since 1974, with operations concentrated in the Miami market.
"In addition to adding an exceptional team, this acquisition provides a springboard for growth in the Southern Florida market with close proximity to our Caribbean business," added Haugh. "The fragmented U.S. market presents a long runway of consolidation opportunities for Parkland to build scale, and better serve our customers. We will remain disciplined in our appraisal of the opportunities we see in front of us."
According to Parkland, the valuation metrics of the transaction reflect Urbieta's scale, significant retail weighting and the purchase of strategic real estate. Gross profit from the acquired assets is split approximately 85 percent retail and 15 percent commercial and wholesale operations.
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2021.
Calgary-based Parkland is a leading convenience store operator and independent supplier and marketer of fuel and petroleum products. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through retailer, commercial and wholesale.