Calgary, Alberta, June 5, 2024 / CNW / - 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.
For Further Information
Investor Inquiries 1-855-355-1051 Investor.Relations@parkland.ca
Media Inquiries 1-855-301-5427 Public.Relations@parkland.ca