Convenience Central
Join our community
extra content

Stirring in the oil patch, Chevron buys Noble for $5 billion

Chevron will take over Noble Energy for $5 billion in the first big deal announced since the coronavirus pandemic shook the energy sector.

Chevron has been shopping for assets since last year and with crude prices down more than 30% this year, it jumped Monday with its all-stock offering for the independent Houston oil and gas driller.

Based on Chevron’s closing price on Friday, Noble Energy shareholders will receive 0.1191 shares of Chevron for each Noble Energy share. But with the list price comes a lot of debt.

Energy companies had been taking on enormous debt even before the pandemic with energy prices have bouncing all over the place. Noble is no exception.

The total enterprise value of the deal is $13 billion, with Chevron assuming Noble’s debt.

Other big players, seeking to cut costs and load up on assets, will likely follow Chevron’s lead, said Gianna Bern, a finance professor at the University of Notre Dame’s Mendoza College of Business.

“This is the first wave of acquisitions,” Bern said.

Last year, as it pursued potential buyout targets, Chevron lost out when Occidental Petroleum made a $38 billion deal for one of them, Anadarko, even though Chevron is five times the size of Occidental.

While Occidental’s valuable holdings in the Permian Basin of west Texas and New Mexico appeared to be a good match, Chevron said at the time that it favoured discipline over “winning at any cost.”

It’s found another match in Noble Energy.

The acquisition brings to Chevron low-cost, proven reserves in addition to cash-generating offshore assets in Israel, strengthening the company’s position in the Mediterranean. Noble’s portfolio will also add to Chevron’s U.S. acreage in the Permian Basin and in Colorado’s DJ Basin.

“Noble Energy’s multi-asset, high-quality portfolio will enhance geographic diversity, increase capital flexibility, and improve our ability to generate strong cash flow,” said Chevron Chairman and CEO Michael Wirth. “These assets play to Chevron’s operational strengths, and the transaction underscores our commitment to capital discipline.”

That discipline is mandatory for any company in the energy sector this year.

On Monday, energy services company Halliburton reported a quarterly loss of about $1.7 billion, and that was better than industry analysts had expected. The 57% plunge in revenue was not.

Energy demand has bounced back as economies reopen globally. U.S. crude prices that fell for first four months of the year are gaining ground, and have been positive since May. It appears prices may remain positive for July, but prices are seesawing and the longest positive streak this month has been two days.

Surging cases of COVID-19 in the U.S., the world’s largest economy, now threaten to hamstring an industry already hit hard by layoffs.

Chesapeake Energy, a shale drilling pioneer that was once one of the largest natural gas producers in the world, filed for bankruptcy protection last month.


Couche-Tard CEO: We’re Still in Pursuit of Caltex Deal

Unknown-1Alimentation Couche-Tard Inc. continues to pursue an agreement to acquire Caltex Australia Ltd.

The Quebec-based company made its first move for Australia’s largest service station operator when it submitted an unsolicited A$32.00-per-share bid for Caltex in October. It followed that with a revised offer for A$34.50 in November after Caltex rejected the first offer as inadequate.

Caltex is a transport fuel supplier with a network of approximately 2,000 company-owned or affiliated sites across Australia.

Caltex’s board of directors also concluded that Couche-Tard’s second proposal undervalued the company and did not represent compelling value for Caltex’s shareholders. However, the board offered to provide Couche-Tard with selected non-public information to allow it to formulate a revised proposal.

As a result, Couche-Tard submitted a new offer to pay a cash price of A$35.25, or U.S. $23.73, per ordinary share. The retailer made the revised proposal on Feb. 12, as previously reported.

Five weeks later, that offer is still on the table.

“While it does not guarantee an agreement will be reached or transaction will be concluded, we are now actively engaged in due diligence to work with Caltex,” Couche-Tard President and CEO Brian Hannasch said during the company’s third-quarter fiscal year 2020 earnings call, held March 18.

“As we said before, Couche-Tard is focused on strategically developing our Asia Pacific presence to drive continued growth in that region in the future,” he added.

Laval-based Couche-Tard has nearly 15,000 sites across 26 countries and regions. Its global brand is Circle K.

Originally posted at Convenience Store News. 


Parkland acquires ConoMart Super Stores in the U.S.

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, has entered into an asset agreement to acquire seven retail sites located in and around Billings, Montana. All seven retail sites feature a strong convenience store offering and a Conoco-branded forecourt.


“This acquisition expands our Montana business and scales our existing Northern Tier Regional Operating Centre,” Doug Haugh, president of Parkland USA, said in a release. “ConoMart Super Stores is a well-run, customer-focused business and we look forward to welcoming the team to Parkland.”

Calgary-based Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator across Canada, the United States, the Caribbean region and the Americas.


7-Eleven adds 100 stores to its portfolio

7-Eleven Long Logo_Sm_0822187‑Eleven, Inc. has substantially expanded its footprint, after officially acquiring more than 100 independently operated 7‑Eleven stores in central Oklahoma.

“These stores have carried the 7‑Eleven name for 67 years, and today they officially join the global 7‑Eleven family,” Joe DePinto, 7‑Eleven president and CEO, said in a release. “We look forward to meeting the needs of Oklahoma customers and offering them the great products and services available in stores across the country.”

The stores were not licensees or franchisees, but rather named as part of a special agreement with the owner that dated back to 1953. All stores included in this acquisition are located in the greater Oklahoma City metropolitan area, bringing the total number of 7‑Eleven stores in the U.S. and Canada to almost 9,800.

7‑Eleven, Inc., operates more than 70,000 stores in 17 countries globally.


Couche Tard faces rival bidder for Caltex

Unknown-1Alimentation Couche-Tard Inc. is facing a rival bidder for Caltex Australia Ltd.

Australia’s largest retail fuel and convenience chain says EG Group Ltd. has made a takeover offer for the company.

Under the proposal, Caltex shareholders would receive roughly AU$15.62 in cash and a security in Ampol, which will own Caltex’s fuel and infrastructure business as well as its international trading and shipping operations.

Caltex says EG has also indicated that it is prepared to consider acquiring up to 10 per cent of Ampol for additional cash consideration.

The company, which operates approximately 2,000 service stations, says it’s considering the proposal, including obtaining advice from its financial and legal advisers.

Quebec-based Couche-Tard raised its offer for all of Caltex last week to AU$35.25 per share in cash less any dividends declared or paid.


Couche-Tard eager to buy “the entire Caltex business”

Unknown-1Alimentation Couche-Tard confirms the announcement by Caltex Australia Limited that it has made a further revised non-binding, indicative offer to the Board of Caltex to acquire 100% of Caltex.

“We believe this further revised proposal takes into consideration the information provided throughout our engagement to date and represents a compelling premium for Caltex shareholders, as well as immediate certainty of value,” Brian Hannasch, president and CEO of Couche-Tard, said in a statement. “We have long viewed the Asia-Pacific region as strategic to Couche-Tard’s future growth, and we look forward to our continued engagement with the Caltex Board in progressing this further revised proposal. We remain a committed buyer of the entire Caltex business, where we see a potential opportunity to leverage our deep operating expertise and global insights to support and grow the Caltex business.”

The revised proposal was made on February 12, 2020 and follows two earlier non-binding proposals. Couche-Tard confirmed in a statement that the latest offer represents its “best and final offer price, in the absence of a competing proposal.”

The Australian company said last week the proposal would pay AU$35.25 cash per share less any dividends declared or paid by Caltex. According to Canadian Press, the revised proposal allows Caltex to pay a special dividend to shareholders.

Couche-Tard raised its offer for Caltex from AU$34.50 per share after the Australian firm said the $7.7-billion offer in December undervalued the company. It was also rebuffed in October when it made an offer of AU$32 per share.

Caltex operates approximately 2,000 service stations. Couche-Tard already owns about 2% of Caltex shares.

While there is no assurance that an agreement will be reached or that a transaction will be concluded, Couche-Tard outlined in a release that if it were to go forward, the transaction would remain subject to various conditions including:

  • Satisfactory completion of due diligence by Couche-Tard;
  • No material asset sales, divestments or acquisitions of assets, capital raisings, capital management initiatives or similar transactions by Caltex, including the planned property IPO;
  • Unanimous recommendation from Caltex’s Board, agreeing to a scheme implementation deed containing customary terms and conditions, and approval by Couche-Tard’s Board; and
  • Approval by Australia’s Foreign Investment Review Board.

Goldman Sachs is acting as financial adviser and Allens is acting as legal adviser to Couche-Tard in relation to the further revised proposal.


Parkland acquires U.S.-based Kellerstrass Oil

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, it has entered into an agreement to acquire the entities and assets of Kellerstrass Oil Company.

UnknownBased in Salt Lake City, Kellerstrass is a regional retail dealer and commercial fuel business with branches in Utah, Idaho and Wyoming.

Calgary-based Parkland is an independent supplier and marketer of fuel and petroleum products and a convenience store operator servicing customers across Canada, the United States, the Caribbean region and the Americas through its retail, commercial and wholesale divisions.

In a release Parkland stated: “In addition to highly efficient trucking, routing and distribution practices, Kellerstrass brings a strategic 17-car rail spur and storage assets, commercial card locks and an 84-location dealer business. Kellerstrass will complement and strengthen Parkland’s existing Rockies Regional Operating Centre.”

The acquisition is part of Parkland’s efforts to expand its U.S. footprint, says Doug Haugh, president of Parkland USA. “We expect this acquisition will support the growth of our North America diesel platform, create supply efficiencies and deliver logistical benefits. We are delighted to enter the Idaho market and expand our presence in Wyoming and look forward to welcoming the Kellerstrass team to Parkland.”

The transaction is subject to customary closing conditions and is expected to close in the first quarter of 2020.


Parkland completes Mort Distributing acquisition

Parkland Fuel Corporation, through its wholly owned U.S. subsidiaries, has completed the previously announced acquisition of the assets of Mort Distributing, Inc.

Mort is a marketer and distributor of fuels and lubricants serving retail, commercial and wholesale customers across Montana. Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator.

Screen Shot 2019-12-03 at 11.46.10 AM

Voortman Cookies to be acquired by Hostess Brands

Screen Shot 2019-12-03 at 11.46.10 AMHostess Brands has announced it has reached an agreement to acquire Burlington, Ont.-based cookie maker Voortman from private equity firm Swander Pace Capital for approximately $425 million.

“Voortman is a leading brand with a well-defined consumer position that complements and extends the growing Hostess portfolio into the growing cookie and better-for-you sweet snacking categories with meaningful runway for future growth,” said Andy Callahan, president and CEO of the Kansas City-based snack manufacturer in a release.

Voortman is a top player in creme wafer and sugar-free cookies, and CEO Douglas MacFarlane said in a statement that the team was excited about becoming part of the Hostess portfolio and the prospects for further growth. The cookie company was founded by brothers William and Harry Voortman in 1951, who emigrated to Canada from The Netherlands in 1948.

The transaction, subject to closing conditions, is expected to be complete in early January.

Originally published at Canadian Grocer. 

Parkland expands U.S. footprint with KB Oil acquisition

Parkland Fuel KB Oil_Sm_051519Parkland USA is adding nine convenience stores to its portfolio through its acquisition of Ken Bettridge Distributing Inc. (KB Oil).

Parkland USA is a subsidiary of Parkland Fuel Corp. KB Oil is a bulk fuel and lubricants distributor and operator of fleet fueling, KB Express convenience stores and cardlock services in Southwest Utah and Southeast Nevada.

“KB Oil has long been a respected and admired provider of bulk fuels and lubricants in the region and is an expert in the trucking industry. Parkland will be able to leverage its resources to better serve customers throughout Utah and Nevada,” said John Jardine, vice president of Parkland USA and general manager of the Rockies ROC. “The acquisition of KB Oil follows on our U.S. growth strategy by establishing scale through the addition of strong local operators.”

KB Oil will incorporate into Parkland’s Rockies Regional Operating Center (ROC) headquartered in American Fork, Utah, with Rhinehart Oil serving as the operating entity.

“We’ve been a family-owned business for more than 40 years, and the professional business model and culture of Parkland appealed to us as we looked to sell,” said Stacey Bettridge, co-president of KB Oil.

Under the terms of the agreement, Parkland will acquire substantially all of the assets, including real estate, used in the operation of KB Oil’s business. The transaction is expected to close in the second quarter.

KB Oil will operate under Parkland USA, a division of Parkland comprising several of Parkland’s wholly owned subsidiaries.

“Our customers will benefit from the increased resources Parkland can provide, and this in turn will contribute to Parkland’s continued organic growth efforts,” added Rand Bettridge, co-president of KB Oil.

Parkland USA is a division of Parkland, comprising several of Parkland wholly owned subsidiaries specializing in the retail, commercial and supply fuel operations. Parkland USA operates 45 convenience stores, 220 dealers and 300 trucks, with 1,000 employees in 11 states. At the core of its strategy are its people, as well as its values of safety, integrity, community and respect.

Canada-based Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator servicing customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.