SOURCE: Parkland Fuel Corporation

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April 20, 2016 08:00 ET

Parkland Fuel Corporation Acquires Girard Bulk Service's Propane Business

RED DEER, AB--(Marketwired - April 20, 2016) - Parkland Fuel Corporation ("Parkland") (TSX: PKI), one of North America's fastest growing distributors and marketers of fuels and lubricants, is pleased to announce it has signed an agreement to purchase the propane assets from 101025267 Saskatchewan Ltd. (the "Propane Business") which are currently operated by Girard Bulk Service Ltd. ("Girard Bulk Service"). Girard Bulk Service's propane business serves commercial and residential customers in southeastern Saskatchewan. The purchase price was $4.8 million, representing approximately five times the annual Adjusted EBITDA of the Propane Business.

"The acquisition allows Parkland to establish a propane offering in southeastern Saskatchewan which complements our existing operations and is a growth area for Parkland's commercial business," said Bob Espey, Parkland's President and CEO. "Parkland shares Girard Bulk Service's commitment to exceptional customer service. We are excited to serve Girard Bulk Service's propane customers under the Bluewave Energy banner and welcome the team members of the Propane Business to Parkland," said Paul Lapensee, Vice President Commercial Operations.

The agreement is subject to standard closing conditions and is anticipated to close in May 2016.

About Parkland Fuel Corporation 

Parkland Fuel Corporation is one of North America's fastest growing independent marketers of fuel and petroleum products. We deliver 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 Girard Bulk Service and the Propane Business, and the anticipated benefits of the acquisition of the Propane Business (the "Acquisition"), the completion of the Acquisition, 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 Acquisition. 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; the failure to achieve the anticipated benefits of the Acquisition; 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.

Non-GAAP Financial Measures 

This press release includes references to Adjusted EBITDA which is a non-GAAP financial measure. See the non-GAAP Financial Measures, Reconciliations, and Advisories section of Parkland's most current MD&A for reconciliation. Parkland believes the presentation of Adjusted EBITDA provides useful information to investors and shareholders as it provides increased transparency and predictive value.

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Contact Information

  • Investor Inquiries
    Patricia van de Sande
    Vice President Investor & Government Relations & Compliance
    403-567-2519
    Email contact


    Media Inquiries
    Elizabeth Wilcox 
    Manager Corporate Communications 
    403-567-2578
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