Parkland Corporation has announced it has entered into a series of transactions to acquire the assets of two U.S.-based fuel distributors.
The company reported last week that it is working to acquire Story Distributing Company and its affiliates. Story is a well-established retail and commercial fuel business headquartered in Bozeman, Montana. This acquisition adds scale and density to Parkland's existing Northern Tier Regional Operating Center (ROC) and expands its presence in the high-growth Montana and Idaho markets.
As well, Parkland announced that it is taking on Carter Oil Company, Inc. Carter is a wholesale and commercial fuel distributor based in Flagstaff, Arizona. This acquisition complements Parkland's existing Utah and Arizona operations within the Rockies ROC and expands Parkland's presence in the high-growth Northern Arizona region.
Altogether, these acquisitions add 13 company retail sites with strong non-fuel contribution and approximately 40 retail dealers, as well as commercial fuel and lubricant distribution capabilities to Parkland's U.S. portfolio. The acquisitions are projected to add annual fuel and petroleum product volume of approximately 275 million litres to the company's U.S. segment.
"We continue to build momentum in the US and advance our growth strategy," said Doug Haugh, president of Parkland USA. "These acquisitions expand our presence in high-growth regions and provide additional opportunities to leverage our On the Run convenience store brand and increase our supply and distribution capabilities. We see an attractive pipeline of opportunities and are well-positioned for further growth."
The Carter transaction is expected to close in the fourth quarter of 2020. The Story transaction is expected to close in early 2021.