Parkland USA to Establish Pacific Northwest Growth Platform Through New Acquisition
CALGARY, Albert — Parkland Corp. is expanding its reach in the United States.
Parkland USA, comprised of wholly owned subsidiaries of the Canadian-based company, entered into an agreement to acquire Conrad & Bischoff Inc. (C&B) and its related companies. Through the acquisition, Parkland will establish a fourth U.S. Regional Operating Center (ROC) in Idaho Falls, Idaho.
C&B is a retail, commercial, wholesale and lubricants business with annual fuel and petroleum product volume of approximately 700 million liters. Family-owned and -operated since 1959, C&B's operations are concentrated in Idaho and western Wyoming with additional distribution capability into Utah, Nevada and Montana, among other states.
"This acquisition checks all the boxes of our U.S. growth strategy and complements our existing ROCs," said Doug Haugh, president of Parkland USA. "C&B strengthens our supply advantage, brings a high-quality retail network and offers a long runway for organic growth."
The transaction includes 58 retail locations, comprising 19 company-owned sites featuring proprietary branded backcourts and 39 retail dealer sites. In addition, terminal operations with combined tank storage of 30 million liters and capacity for 88 rail cars adds significant supply optionality in PADD IV, the company said.
"In addition to adding an exceptional team, C&B creates a springboard for growth throughout the Pacific Northwest," Haugh added. "We continue to profitably grow our U.S. business and will remain disciplined in our appraisal of the many opportunities we see in front of us."
According to Parkland, the transaction will be completed at valuation metrics consistent with recent acquisitions which established new ROCs in the U.S. Gross profit from the acquired assets is split approximately 55 percent retail operations and 45 percent wholesale and commercial operations.
The acquisition will be funded out of existing credit facility capacity, is subject to customary closing conditions and is expected to close in the second quarter.
Parkland is an independent supplier and marketer of fuel and petroleum products and a convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.