RED DEER, ALBERTA--(Marketwired - Jan. 8, 2014) - Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX:PKI), a North American petroleum products marketer, today announced that it has successfully completed the previously announced acquisition of all outstanding shares of SPF Energy Inc. ("SPF"), the parent company of Farstad Oil Inc. ("Farstad") and Superpumper Inc. ("Superpumper"). For financial reporting purposes the effective date of the acquisition was January 1, 2014. All financial figures have been converted to Canadian dollars.
The total consideration for all outstanding shares of SPF was $113 million. The purchase price consisted of approximately $91 million cash and the issuance of 1.2 million common shares of Parkland. Share consideration was calculated using the volume weighted average price of $18.4761 for the five trading days immediately preceding the closing. The final adjusted purchase price will be determined post-closing, subject to customary adjustments.
"We are pleased to welcome the SPF Energy Team to Parkland," said Bob Espey, President and Chief Executive Officer of Parkland. "Our strategy is to grow in areas with strong future prospects where we can add value through our robust supply capability. SPF Energy provides a strong platform for further growth in the Northwestern United States.
About Parkland Fuel Corporation
Parkland Fuel Corporation is an independent marketer of petroleum products in North America, empowered by a continent-wide logistics, supply and trading platform. We provide motorists, businesses, consumers and wholesale customers with a safe and dependable source of gasoline, diesel, propane, lubricants, heating oil and other products through a network of locations across North America that are run by community based operators who care.
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Certain information included herein is forward-looking. Forward-looking statements include, without limitation, statements regarding the anticipated benefits, including, without limitation, the opportunities, capabilities and synergies, that may result as a consequence of the Acquisition, the accretive impact of the Acquisition, the operations of SPF and Parkland following the completion of the Acquisition, Parkland's expectation of its future financial position, business and growth strategies, including the manner in which such strategies will be implemented, budgets, projected costs, sources of growth, capital expenditures, financial results, future acquisitions and the efficiencies to be derived therefrom and plans and objectives of or involving Parkland. Many of these statements can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "projected", "anticipates", "estimates", "continues", or similar words and include, but are not limited to, statements regarding the accretive effects of acquisitions and the anticipated benefits of acquisitions. 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 achieve the anticipated benefits of the Acquisition, failure to meet financial, operational and strategic objectives and plans, 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.