Calgary, Alberta, June 5, 2024 /CNW/ – Parkland Corporation (“Parkland”, “the Company”, “the Company” or the “Company”) (TSX: PKI) announced today that it has entered into an agreement with Avenir Energy Inc. to sell its Canadian commercial propane business for approximately $10 million in cash. $115 millionto become the exclusive supplier of fuel for a period of 10 years (the “Sale”).
“This transaction marks a major step towards achieving our goals. $500 million “We aim to complete the sale of non-core assets by the end of 2025.” Ian White“By focusing on our core assets, we are simplifying our operations and improving profitability. With our customer-centric focus, we believe we continue to see significant opportunities to generate growth and value from our Canadian operations,” said Anne McLellan, president of Parkland Canada.
Subject to certain closing conditions, the transaction is expected to close in the fourth quarter of 2024. Scotiabank is acting as financial advisor for the sale.
About Parkland Corporation
Parkland is an international fuel distributor, marketer and convenience store operating in 26 countries across the Americas. We serve more than one million customers daily. Our retail network meets the fuel and convenience needs of everyday consumers. Our commercial business provides industrial fuels to help businesses better serve their customers. In addition to meeting our customers’ essential fuel needs, we offer a variety of options to help reduce our environmental impact. This includes renewable fuel sourcing, manufacturing and blending, carbon and renewable energy trading, solar power and ultra-fast EV charging. Canada, united states of americaand the Caribbean The company has developed supply, distribution and trading capabilities to accelerate growth and performance in the region.
Our strategy is focused on two pillars: customer advantage and supply advantage. Through customer advantage, we strive to be our customers’ first choice and drive customer loyalty through our unique brand, differentiated offers, extensive network, competitive pricing, reliable service and attractive loyalty programs. Our supply advantage is based on achieving the lowest cost to serve among independent fuel marketers and distributors through well-positioned assets, significant scale and strong supply and logistics capabilities in the hard-to-serve markets in which we operate. Our business is underpinned by our people and the values of safety, integrity, community and respect that are deeply ingrained throughout our organization.
Forward-Looking Statements
Certain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release, words such as “expect,” “plan,” “achieve,” “see,” “continue,” “seek” and similar words are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements regarding, among other things, the success and timing of the sale and the expected benefits of the sale, including the likelihood of closing the sale. $500 million The goal is to divest by the end of 2025 to enable continued growth for Parkland’s Canadian business.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those projected in such forward-looking statements. There can be no assurance that these expectations will prove to be correct, and undue reliance should not be placed on such forward-looking statements contained in this news release. These forward-looking statements speak only as of the date of this news release. Parkland undertakes no obligation to publicly update or revise any forward-looking statements, except as required by securities laws. Actual results may differ materially from those projected in these forward-looking statements as a result of a number of risks and uncertainties, including, but not limited to, failure to complete the sale, failure to satisfy the conditions to the completion of the sale, failure to realize all or any portion of the anticipated benefits of the sale, general economic, market and business conditions, competitive actions by other companies, ability of suppliers to fulfill their commitments, actions by governmental and other regulatory authorities (including, but not limited to, increases in taxes or restrictions on market access), changes or developments in environmental and other regulations, and many other factors beyond Parkland’s control. See also the risks and uncertainties described under “Forward-Looking Information” and “Risk Factors” in Parkland’s Annual Information Form. February 27, 2024and the “Forward-Looking Information” and “Risk Factors” contained in our Fourth Quarter 2023 MD&A. February 27, 2024 MD&A for Q1 2024 May 1, 2024Each has been filed on SEDAR and is available on Parkland’s website at www.parkland.ca.
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Source: Parkland Corporation
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