Canadian convenience store operator and independent fuel retailer Parkland has acquired oil and gas company Pétroles Crevier.
Based in Montreal, Crevier operates a portfolio of 36 company-owned retail locations and 138 retail dealer locations.
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By GlobalDataThe acquisition is expected to increase Parkland’s annual run-rate adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) by around C$12m ($9.68m).
Parkland will also benefit from Crevier’s wholesale business and substantial unbranded volume.
Parkland Canada president Donna Sanker said: “This acquisition extends our existing retail network in Quebec and expands our presence in key markets.
“We believe we can add significant value by deploying our proven retail capabilities, proprietary Marche Express (ON the RUN) convenience and Ultramar forecourt brands, and JOURNIE Rewards loyalty programme.
“We look forward to continuing to provide Crevier’s customers with essential products and exceptional service.”
This acquisition is Parkland’s eighth so far this year. It is in line with the company’s run-rate adjusted EBITDA target of $2bn by the end of 2025.
The financial terms of the transaction have not been disclosed, but 75% of the purchase price will be funded out of Parkland’s existing credit facility capacity.
The company’s common shares, issued from treasury, will be used to fund the remaining 25%.
The deal is expected to close in the first quarter of next year subject to customary closing conditions, including approval under the Competition Act (Canada).
Parkland supplies and sells fuel and petroleum products via retail, commercial and wholesale channels across Canada, the US, the Caribbean region and the Americas.
Last December, the company agreed to acquire the assets of Story Distributing Company and Carter Oil Company, together with their US affiliates.
The transaction was carried out through the company’s wholly owned US subsidiary, Parkland USA.
Through the deal, Parkland acquired 13 company retail sites and around 40 retail dealers, as well as commercial fuel and lubricant distribution capabilities.