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11/03/2021

Parkland grows U.S. retail business with Urbieta Oil Co. acquisition

94-store deal close to doubles Parkland's retail presence in the highly fragmented market.
Michelle Warren
Editor, Convenience Store News Canada
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Parkland Corporation, through its wholly owned U.S. subsidiaries, Parkland USA, has entered into an agreement to acquire substantially all of the assets of Urbieta Oil Co. and certain of its affiliates.

This acquisition complements Parkland’s existing Florida commercial business by establishing a large retail and convenience growth platform with what the company calls high quality real estate in Miami.

“This acquisition advances our growth strategy to increase our convenience retail presence in a region where we have had success with fuel supply and commercial operations,” Doug Haugh, president of Parkland USA, said in a release. “Adding the Urbieta stores nearly doubles our U.S. retail business, provides immediate scale in a resilient, fast-growing market, and creates opportunity to meet customers’ needs through our On the Run convenience brand.”

Family owned and operated since 1974, Urbieta is a Miami-area retail, convenience, and fuel distribution business with 2020 annual fuel sales of approximately 465 million litres. The transaction includes 94 retail locations, including the real estate purchase of 54 strategic sites.

“In addition to adding an exceptional team, this acquisition provides a springboard for growth in the Southern Florida market with close proximity to our Caribbean business,” added Haugh. “The fragmented U.S. market presents a long runway of consolidation opportunities for Parkland to build scale, and better serve our customers. We will remain disciplined in our appraisal of the opportunities we see in front of us.”

The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2021.