Parkland Fuel Corporation Announces Acquisition of Missouri Valley Petroleum
August 28, 2018
Acquisition to drive growth in commercial fuels across North Dakota
CALGARY, Alberta, Aug. 28, 2018 (GLOBE NEWSWIRE) -- Parkland Fuel Corporation (“Parkland”, “We”, “Our” or “Us”) (TSX:PKI) Canada's largest and one of North America's fastest growing independent marketers of fuel and petroleum products and a leading convenience store operator, is pleased to announce that Parkland through its U.S. based subsidiaries (collectively, "Parkland USA"), has entered into an agreement to acquire all of the issued and outstanding equity interests of Missouri Valley Petroleum, Inc. and its affiliates (collectively, "MVP"), a petroleum products distributor with operations throughout North Dakota along with certain real estate assets used in the operation of the business. (the "Acquisition").
MVP is a retail, wholesale and lubricants business with headquarters in Mandan, N.D. MVP operates three bulk plant terminals co-located with cardlocks in Williston, Belfield, and Mandan, and owns and operates six retail sites with convenience stores located in Mandan, Rugby and Bismarck. MVP also supplies 19 branded dealers across North Dakota and distributes approximately 84 million gallons (318 million litres) of fuel and petroleum products annually.
"The MVP Acquisition is a tuck-in acquisition for Parkland USA that brings a great asset base and team which will accelerate the growth of our North Dakota business. We are excited to welcome the MVP employees to the Parkland team," said Bob Espey, President and Chief Executive Officer of Parkland.
"The MVP Acquisition represents an opportunity for Parkland USA to grow within our existing footprint in North Dakota and expand our offering into the commercial fuel market. These business lines provide us with a strong organic growth opportunity that we do not address today through our existing retail and wholesale fuel operations in North Dakota," said Doug Haugh, President of Parkland USA.
The Acquisition is expected to close on or about October 1, 2018 and is expected to be funded with cash flows and capacity under Parkland's existing credit facility. The Acquisition is subject to customary closing conditions.
About Parkland Fuel Corporation
Parkland is Canada's largest and one of North America's fastest growing independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland services customers through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating the Parkland Burnaby Refinery, and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings, including its On the Run/Marché Express banners, in the communities it serves.
Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization.
Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words ‘‘expect’’, ‘‘will’’, ‘‘could’’, ‘‘would’’, ‘‘believe’’, “continue”, ‘‘pursue’’ and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the successful completion of the Acquisition, and previously announced acquisitions, and the timing thereof, business objectives and growth strategies; future acquisitions and organic growth, and the benefits resulting from the Acquisition including expected increase to EBITDA and revenues.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to: failure to complete the Acquisition; failure to satisfy the conditions to closing of the Acquisition; failure to achieve the anticipated benefits of the Acquisition; general economic, market and business conditions; competitive action by other companies; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Statements” and “Risk Factors” included in Parkland’s Annual Information Form dated March 9, 2018 and in “Forward-Looking Statements” and “Risk Factors” in the Q2 2018 MD&A, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.
CONTACT: FOR FURTHER INFORMATION Investor Inquiries Melanie Forsyth 403-567-2525 Melanie.Forsyth@parkland.ca Media Inquiries Leroy McKinnon Senior Specialist, Corporate Communications 403-567-2573 Leroy.McKinnon@parkland.ca