CALGARY,
AB, June 5, 2024 /PRNewswire/ - Parkland
Corporation ("Parkland", "we", the "Company", or "our") (TSX: PKI),
announced today it has entered into an agreement with Avenir Energy
Ltd. to divest its Canadian commercial propane business for cash
consideration of approximately $115
million, and to exclusively supply fuel for ten years (the
"Divestment").
"This transaction is a big step toward achieving our target of
$500 million from the divestment of
non-core assets by the end of 2025," says Ian White, President of Parkland
Canada. "By focusing on our core assets, we are simplifying
our business to improve returns. Driven by our customer focus, we
continue to see tremendous opportunity to deliver growth and value
from our Canadian business."
Subject to certain closing conditions, the transaction is
expected to close in the fourth quarter of 2024. Scotiabank is
acting as the financial advisor for the Divestment.
About Parkland
Corporation
Parkland is an international fuel distributor, marketer, and
convenience retailer with operations in 26 countries across the
Americas. We serve over one million customers each day. Our retail
network meets the fuel and convenience needs of everyday consumers.
Our commercial operations provide businesses with industrial fuels
so that they can better serve their customers. In addition to
meeting our customers' needs for essential fuels, we provide a
range of choices to help them lower their environmental impact.
These include renewable fuels sourcing, manufacturing, and
blending, carbon and renewables trading, solar power, and
ultra-fast EV charging. With approximately 4,000 retail and
commercial locations across Canada, the United
States, and the Caribbean
region, we have developed supply, distribution, and trading
capabilities to accelerate growth and business performance.
Our strategy is focused on two pillars: our Customer Advantage
and our Supply Advantage. Through our Customer Advantage, we aim to
be the first choice of our customers, cultivating their loyalty
through proprietary brands, differentiated offers, our extensive
network, competitive pricing, reliable service, and our compelling
loyalty program. Our Supply Advantage is based on achieving the
lowest cost to serve among independent fuel marketers and
distributors in the hard-to-serve markets in which we operate,
through our well-positioned assets, significant scale, and deep
supply and logistics capabilities. Our business is underpinned by
our people and our values of safety, integrity, community, and
respect, which are deeply embedded across 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 the
words "expect", "will", "achieving", "see", "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 Divestment and the timing thereof;
expected benefits of the Divestment, including: the potential to
complete $500 million in divestments
by the end of 2025 and the continued growth of 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 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 may be
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 Divestment; failure to satisfy
the conditions to closing of the Divestment; failure to realize all
or any of the anticipated benefits of the Divestment; general
economic, market and business conditions; competitive action by
other companies; the ability of suppliers to meet commitments;
actions by governmental authorities and other regulators including
but not limited to increases in taxes or restricted access to
markets; 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 Information" and "Risk Factors" included in
Parkland's Annual Information Form dated February 27, 2024, and "Forward-Looking
Information" and "Risk Factors" included in the Q4 2023 MD&A
dated February 27, 2024 and the Q1
2024 MD&A dated May 1, 2024, each
filed on SEDAR and available on the Parkland website at
www.parkland.ca.
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SOURCE Parkland Corporation