Building on a series of acquisitions in 2021, Parkland Corporation has entered into an agreement to acquire Pétroles Crevier Inc., which includes 36 company-owned retail locations and 138 retail dealer locations, as well as wholesale operations.
Crevier is a subsidiary of Montreal-based Crevier Group. Once the sale is complete, the family-owned company, will focus on its lubricants business, Catalys Lubricants and Crevier Lubrifiants. A new warehouse is already up and running in Edmonton and others are expected to open in the coming months.
This is Parkland’s eighth acquisition announced year-to-date, which the company says supports its overall growth strategy and moves it toward the goal of $2 billion of run-rate Adjusted EBITDA by the end of 2025.
“This acquisition extends our existing retail network in Quebec and expands our presence in key markets,” Donna Sanker, president of Parkland Canada, said in a release. “We believe we can add significant value by deploying our proven retail capabilities, proprietary Marche Express (On the Run) convenience and Ultramar forecourt brands, and JOURNIE Rewards loyalty program. We look forward to continuing to provide Crevier’s customers with essential products and exceptional service.”
In addition to serving customers through its retail locations, Parkland said in a release: "Crevier’s large wholesale business and significant unbranded volume enhance our supply advantage and import optionality. This transaction is expected to add annual fuel and petroleum product volume of approximately 700 million litres, of which 70 percent is attributable to wholesale, and annual run-rate Adjusted EBITDA of approximately C$12 million, prior to additional growth and synergy upside."
The transaction is expected to close in the first quarter of 2022 and is subject to approval under the Competition Act (Canada) and other customary closing conditions: 75% of the transaction consideration will be funded out of existing credit facility capacity, and the remaining 25% with Parkland common shares issued from treasury.
Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.