Parkland Fuel Corporation’s Acquisition of Rhinehart Oil Co., Inc. Expected to Double its U.S. Operations
CALGARY, Alberta, Aug. 13, 2018 (GLOBE NEWSWIRE) — Parkland Fuel Corporation (“Parkland”, “We”, “Our” or “Us”) (TSX:PKI) Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products and a leading convenience store operator, is pleased to announce that Parkland through its U.S. based subsidiaries (collectively, “Parkland USA”), has entered into an agreement to acquire all of the issued and outstanding equity interests of Rhinehart Oil Co., Inc. and its affiliates (collectively, “Rhinehart”), a retail, commercial and lubricants business with operations in Utah, Colorado, Wyoming and New Mexico, (the “Acquisition”).
Rhinehart is headquartered in American Fork, Utah and transports, distributes and markets a full range of fuels, lubricants and chemical products in addition to providing equipment and one-stop shop servicing to its customers in the region. Rhinehart operates and supplies four cardlock facilities, nine retail sites and markets and distributes fuels, lubricants and specialties through ten distribution facilities. Rhinehart distributes approximately 72 million gallons of fuel and lubricants per year.
“The Rhinehart Acquisition represents a significant expansion for Parkland,” said Bob Espey, President and Chief Executive Officer of Parkland. “Rhinehart has an excellent business and asset base that will serve as a platform for growth in Utah, Colorado and neighboring states. We are excited to welcome Dave and John Jardine from the Rhinehart leadership team and the rest of the Rhinehart employees to the Parkland team.”
“Rhinehart is a prominent fuel distributor and a well scaled and respected ExxonMobil lubricants distributor,” said Doug Haugh, President of Parkland USA. “The addition of Rhinehart to the Parkland USA team provides us with the talented staff and scalable infrastructure we need to establish our Regional Operations Center (“ROC”) for the Rocky Mountain tributary. This ROC will be the operating platform that drives organic growth and enables further acquisitions across the region that can leverage substantial existing capacity within their current rail hubs, bulk storage terminals, and warehouses.”
The Acquisition is expected to close on or about August 27, 2018 and is expected to be funded with cash flows and capacity under Parkland’s existing credit facility. The Acquisition is subject to customary closing conditions.
About Parkland Fuel Corporation
Parkland is Canada’s largest and one of North America’s fastest growing independent suppliers and marketers of fuel and petroleum products and a leading convenience store operator. Parkland services customers through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating the Parkland Burnaby Refinery, and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings, including its On the Run/Marché Express banners, 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.
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 and the timing thereof, business objectives and growth strategies; future acquisitions and organic growth, and the benefits resulting from the Acquisition including expected increase to EBITDA and revenues.
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 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 Acquisition; failure to satisfy the conditions to closing of the Acquisition; failure to achieve the anticipated benefits of the Acquisition; general economic, market and business conditions; competitive action by other companies; 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 Statements” and “Risk Factors” included in Parkland’s Annual Information Form dated March 9, 2018 and in “Forward-Looking Statements” and “Risk Factors” in the Q2 2018 MD&A, each as filed on SEDAR and available on the Parkland website at www.parkland.ca.
Senior Specialist, Corporate Communications