RED DEER, AB--(Marketwired - October 27, 2016) -
(All amounts in Canadian dollars unless specified otherwise)
Parkland Fuel Corporation ("Parkland") (TSX: PKI), Canada's largest and one of North America's fastest growing independent marketers of fuel and petroleum products, is pleased to announce that it has signed agreements to purchase the assets of PNE Corporation ("PNE") as well as three service stations in Wyoming. These transactions will expand Parkland's commercial and retail businesses across Canada and in Wyoming, respectively.
Parkland has signed an agreement to purchase the assets and operations of PNE, a national provider of propane cylinder exchange services for $17 million, representing approximately 5.7 times the Adjusted EBITDA of the business. The acquisition will add approximately 17 million litres of propane on an annual basis and will expand the scope of Parkland's propane business to include a national 20-pound cylinder exchange offering in addition to a 33 and 100-pound cylinder offering in Ontario. "This acquisition introduces a new business line within the propane space for Parkland," said Bob Espey, Parkland's President, and CEO. "It will allow us to grow our commercial capabilities by introducing and leveraging PNE's expertise in cylinder refilling, and distribution from British Columbia through to Québec. We look forward to continuing to provide strong customer service nationwide under the PNE banner and welcome PNE team members to Parkland."
In a separate transaction, Parkland has agreed to acquire three sites from 7-Eleven Inc. These sites include two truck stops and one retail station in and around Cheyenne, Wyoming in the southeast part of the state. Collectively, these stations are expected to sell more than 15 million gallons (55 million litres) of fuel on an annual basis. "This acquisition will expand the Parkland USA presence in Wyoming by adding our first truck stops and retail stations in that state," said Bob Espey. "We are excited to service customers at these sites under the SPF banner."
Both agreements are subject to standard closing conditions and are anticipated to close by the end of 2016.
ABOUT PARKLAND FUEL CORPORATION
Parkland delivers gasoline, diesel, propane, lubricants, heating oil and other high-quality petroleum products to motorists, businesses, households and wholesale customers in Canada and the United States. Our mission is to be the partner of choice for our customers and suppliers, and we do this by building lasting relationships through outstanding service, reliability, safety and professionalism.
We are unique in our ability to provide customers with dependable access to fuel and petroleum products, utilizing a portfolio of supply relationships, storage infrastructure, and third party rail and highway carriers to rapidly respond to supply disruptions in order to protect our customers.
FORWARD LOOKING INFORMATION
Certain information included herein is forward-looking. Forward-looking statements include, without limitation statements regarding PNE, PNE's business, the retail stations acquired from 7-Eleven (collectively, the "Acquired Assets"), and the anticipated benefits of the acquisition of the Acquired Assets (the "Acquisitions"), the completion of the Acquisitions, the satisfaction of all conditions to the completion of the Acquisitions including without limitation, obtaining all necessary third party and regulatory consents and approvals and the timing thereof, and the contribution to Adjusted EBITDA expected from the Acquisitions. Forward-looking statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "projected", "anticipates", "estimates", "continues", or similar words. Parkland believes the expectations reflected in such forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties some of which are described in Parkland's annual information form and other continuous disclosure documents. Such forward-looking statements necessarily involve known and unknown risks and uncertainties and other factors, which may cause Parkland's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors include, but are not limited to: failure to obtain necessary regulatory or other third party consents and approvals for the Acquisitions; the failure to achieve the anticipated benefits of the Acquisitions; general economic, market and business conditions; industry capacity; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities including increases in taxes; changes in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. Any forward-looking statements are made as of the date hereof and Parkland does not undertake any obligation, except as required under applicable law, to publicly update or revise such statements to reflect new information, subsequent or otherwise.
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