Calgary-based Parkland Corporation has announced, two transactions that strengthen their position in the Caribbean market.
Parkland business unit, SOL, will become a 50% indirect partner in Isla Dominicana de Petroleo Corp. This move creates the Dominican Republic’s (DR) largest retail network through the contribution of SOL’s approximately 80 retail locations, commercial and aviation marketing operations in the DR. Isla currently operates a high-quality retail network with approximately 160 locations. The combined portfolio will comprise 240 retail sites (the largest retail network in the Dominican Republic alongside an integrated commercial and aviation business). As part of the agreement, Isla will operate the joint on-shore marketing operations while Parkland will become the principal fuel supplier to the combined network.
Strategic rationale includes:
•A market-leading retail network in DR's major population centres with operational synergies;
•Strong free cash flow conversion with regulated on-shore margins in a high-growth market;
•Unlocks supply synergies through improved scale and optimized shipping logistics and;
•A new partnership with a shared appetite for continued growth and renewable opportunities.
Parkland also signed an agreement for the purchase of an integrated fuel marketing business with operations in St. Maarten. The acquisition includes retail, commercial, marine, LPG distribution and aviation business. The acquisition strengthens their activities at the Princess Juliana International Airport (a hub for surrounding islands and major North American and European markets) and adds a complementary retail network. The acquisition will make the company the leading fuel marketer in the Dutch side of St. Maarten.
“These transactions strengthen Parkland’s network throughout the Caribbean and extend our portfolio of growth opportunities in retail, commercial, LPG and aviation,” says Pierre Magnan, president of Parkland International. “Our international business currently spans 23 countries and provides a platform for continued organic growth and consolidation in the region. We are excited about the opportunity set in the International segment that we expect to play a significant role in achieving Parkland’s 2025 growth ambition.”