Parkland Completes Acquisition of Chevron Canada’s Downstream Fuel Business
October 1, 2017
CALGARY, Alberta--(BUSINESS WIRE)-- Parkland Fuel Corporation (“Parkland”) (TSX:PKI), Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products, announced today the closing of its acquisition of Chevron Canada R & M ULC which operates a downstream fuel business in British Columbia and Alberta.
“This acquisition provides Parkland with British Columbia’s strongest fuel marketing business and will make Parkland the exclusive distributor of Chevron-branded fuels. With this acquisition, Parkland is also acquiring the Burnaby Refinery, a proven asset that directly supports our core fuel marketing business in an important region, and enhances our supply advantage,” said Bob Espey, President and Chief Executive Officer of Parkland. “We are extremely pleased to welcome the Chevron Canada refining and marketing employees to the Parkland team. We believe in and are committed to investing in these assets, and the local employees who will help us grow in BC and beyond.”
Parkland closed the transaction on October 1, 2017 at 00:59am (Calgary time).
Parkland will update its 2017 Adjusted EBITDA guidance concurrently with the release of its Q3 2017 financial results.
SUMMARY OF ACQUIRED BUSINESS
The Acquisition includes:
• 129 Chevron branded retail service stations principally located in the Greater Vancouver area
• 37 commercial cardlock locations in British Columbia and Alberta
• Wholesale aviation business serving the Vancouver International Airport
• Three terminals located in Burnaby, Hatch Point, and Port Hardy, BC
• 55,000 bpd light / sweet crude refinery located in Burnaby, BC
FORWARD-LOOKING STATEMENTS AND NON-GAAP FINANCIAL MEASURES
Certain information included herein is forward-looking. Many of these forward looking statements can be identified by words such as “expects”, “expected”, “will”, “anticipate”, “continue”, 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: 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. The forward-looking statements contained in this press release are expressly qualified by this cautionary statement.
ABOUT PARKLAND FUEL CORPORATION
Parkland Fuel Corporation is Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products. It 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.