Parkland executives may be let go when acquisition by fuel giant Sunoco is completed
In a filing with the United States Securities and Exchange Commission (SEC) in Washington, D.C. the new entity to come about from Parkland Corp.’s acquisition by Sunoco LP, SUNCorp, may result Parkland’s existing board of directors being let go.
According to the filing, once SUNCorp comes into being, the existing leadership of Parkland may be asked to step down—including its board of directors—with only a single member of the board to remain who will then take on a new role at SUNCorp’s newly established board for one year.
The filing with the SEC read as follows:
“The Parties acknowledge that the employment of each of the executive officers of the Company who remains employed by the Company immediately prior to the Effective Time will be terminated on completion of the Arrangement (each, a “Non-Continuing Company Individual”) and the payments owing to each Non-Continuing Company Individual as a result thereof (as disclosed in Section 4.12(a) of the Company Disclosure Letter) shall, subject to execution and delivery by each Non-Continuing Company Individual of a resignation and mutual release, in a form acceptable to Sunoco, acting reasonably, be paid by the Company to each Non-Continuing Company Individual at or prior to the Effective Time.”
READ: U.S.-based Sunoco signs deal to purchase Parkland Corp.
In early April, Parkland announced a slate of 13 directors, including three from Simpson Oil Ltd., for election to the board. The announcement of these new directors came at the same time Parkland was undertaking a comprehensive strategic review of its operations, including a possible sale of Parkland.
In mid-April, Parkland president and chief executive officer Bob Espey announced to Parkland's board of directors that he was planning to step down.
“On behalf of the Board, I would like to thank Bob for his vision and leadership over the last fifteen years as President & CEO,” said Michael Jennings, executive chair of Parkland upon Espey’s announcement.
