Parkland announces sale of its Florida business
Parkland Corporation announced that it is initiating a process to divest its Florida-based retail and commercial businesses.
The Calgary-based company said this sale is part of its business strategy laid out in November 2023, where the company expects to double cash flow per share to $8.50 and grow Adjusted EBITDA to $2.5 billion by 2028 through continued organic growth, lowering costs and optimizing its supply advantage.
“This disposition reflects our commitment to direct capital towards our highest return opportunities and maximize shareholder value,” said Bob Espey, president and CEO, Parkland in a release accompanying the announcement. “We remain deeply committed to our northern U.S. business, which is performing well and has strong connectivity with Canada.”
While its Florida improvement plan is on track, Parkland said it has more accretive investment opportunities in other parts of its business that can deliver stronger financial returns and growth.
Parkland remains focused on improving returns and increasing cash flow through disciplined capital allocation. By divesting non-core assets, the company continues to focus on areas with the highest growth potential and strongest synergies with its core business.
Parkland’s Florida business comprises approximately 100 retail locations, nine cardlock facilities and four bulk storage plants and warehouses. According to Parkland, early indications show substantial interest in the Florida assets, and the company expects to complete this disposition within the next 12 to 18 months.
The announced sale of Parkland’s Florida business is part of the company’s previously announced non-core asset divestment program which Parkland expects will significantly exceed $500 million by the end of 2025. It also expects to close the previously announced sale of its Canadian propane business in the fourth quarter of 2024. This disposition includes estimated cash proceeds of $115 million and an exclusive long-term supply contract with the new owner.
