CALGARY, AB, Nov. 11, 2021 /PRNewswire/ - Parkland Corporation
("Parkland", "we", "our", or "the Company") (TSX:PKI) is
pleased to announce that through its wholly-owned U.S. subsidiaries
(collectively, "Parkland USA"), it
has entered into an agreement to acquire substantially all of the
assets of Lynch Oil and certain of its affiliates (collectively,
"Lynch"). This acquisition strengthens our growth platform across
the Pacific Northwest and complements our existing retail,
commercial and wholesale businesses in Idaho.
"This acquisition advances our strategy by strengthening our
retail convenience network and supply advantage in a growing market
where we already have a significant presence," said Doug Haugh, President of Parkland USA. "We are excited to welcome the Lynch team
to Parkland and look forward to growing our customer base and
providing them with the quality products and exceptional service
they expect."
Family owned and operated since 1923, Lynch's operations are
concentrated in southern and central Idaho. This acquisition
adds annual fuel sales of over 180 million litres and includes five
large-format convenience stores and forecourts, two travel centers,
two stand-alone car washes, and a rail storage terminal. Gross
profit from the acquired assets is split roughly 60 percent retail,
convenience, carwash and non-fuel, and 40 percent commercial and
wholesale.
90 percent of the transaction consideration will be funded out
of existing credit facility capacity, and the remaining 10 percent
with Parkland common shares issued from treasury. The transaction
is expected to close in the fourth quarter of 2021.
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", "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 of Lynch and
the timing thereof; expected benefits of the acquisition,
increasing retail and convenience presence in the market, potential
supply advantage resulting from the transaction, consolidation
opportunities for Parkland, the expected gross profit split amongst
the segments of the business, and the anticipated funding of the
acquisition.
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 this acquisition; failure to
satisfy the conditions to closing of the acquisition, including
approval by the U.S. Federal Trade Commission and Department of
Justice; failure to realize all or any of the anticipated benefits
of the acquisition; general economic, market and business
conditions; competitive action by other companies; refining and
marketing margins; 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 March 5, 2021, and "Forward-Looking Information"
and "Risk Factors" included in the Q3 2021 MD&A dated
November 2, 2021 and the Q4 2020
MD&A dated March 4, 2021, each
filed on SEDAR and available on the Parkland website at
www.parkland.ca. The forward-looking statements contained in this
news release are expressly qualified by this cautionary
statement.
About Parkland
Parkland is a leading convenience store operator and independent
supplier and marketer of fuel and petroleum products. Parkland
services customers across Canada,
the United States, the
Caribbean region, and the Americas
through three channels: Retail, Commercial and Wholesale. Parkland
optimizes its fuel supply across these three channels by operating
and leveraging a growing portfolio of supply relationships and
storage infrastructure. Parkland provides trusted and locally
relevant fuel brands and convenience store offerings 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.
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SOURCE Parkland Corporation