Parkland advances growth strategy with two U.S. acquisitions

CALGARY, Alberta, Dec. 03, 2020 (GLOBE NEWSWIRE) — Parkland Corporation (“Parkland”, “we”, “our”, or “the Company”) (TSX:PKI) is pleased to announce that through its wholly owned U.S. subsidiaries (collectively, “Parkland USA”), it has entered into a series of transactions (the “Acquisitions”) to acquire:The assets of Story Distributing Company and its affiliates (collectively, “Story”). 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 our presence in the high-growth Montana and Idaho markets.The assets of Carter Oil Company, Inc. and its affiliates (collectively, “Carter”). Carter is a wholesale and commercial fuel distributor based in Flagstaff, Arizona. This acquisition complements Parkland’s existing Utah and Arizona operations within our Rockies ROC and expands our presence in the high-growth Northern Arizona region.On a combined basis, the Acquisitions include 13 quality company retail sites with strong non-fuel contribution, approximately 40 retail dealers as well as commercial fuel and lubricant distribution capabilities. The Acquisitions are expected to add annual fuel and petroleum product volume of approximately 275 million litres to our USA segment.“We continue to build momentum in the U.S. 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 Acquisitions are at valuation metrics consistent with Parkland’s prior U.S. transactions and will be funded with cash on hand and existing credit facility capacity. The transactions are subject to customary closing conditions, with Carter expected to close in the fourth quarter of 2020 and Story in early 2021. Closing will be confirmed as part of our regular quarterly disclosure. Forward-Looking StatementsCertain statements contained in this news release constitute forward-looking information and statements (collectively, “forward-looking statements”). When used in this news release the words “expect”, “will”, “could”, “would”, “believe”, “continue”, “pursue” and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the successful completion of the acquisition of Acquisitions and the timing thereof; expected benefits of the Acquisitions, the anticipated sources of funding of the Acquisitions, and future acquisition opportunities. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, failure to complete this acquisition; failure to satisfy the conditions to closing of the Acquisitions; failure to achieve the anticipated benefits of the Acquisitions; general economic, market and business conditions; competitive action by other companies; refining and marketing margins; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in “Forward-Looking Information” and “Risk Factors” included in Parkland’s Annual Information Form dated March 30, 2020 and in “Forward-Looking Information” and “Risk Factors” in Parkland’s annual MD&A for the year ended December 31, 2019 dated March 5, 2020 and in the interim MD&A for the three and nine month period ended September 30, 2020 dated November 3, 2020, each as filed on SEDAR and available on the Parkland website at www.parkland.ca. About Parkland  Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: Retail, Commercial and Wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves. Parkland creates value for shareholders by focusing on its proven strategy of growing organically, realizing a supply advantage and acquiring prudently and integrating successfully. At the core of our strategy are our people, as well as our values of safety, integrity, community and respect, which are embraced across our organization. For Further InformationInvestor InquiriesBrad MonacoDirector, Capital Markets587-997-1447Brad.Monaco@parkland.caMedia InquiriesLeroy McKinnonSenior Specialist, Corporate Communications403-567-2573Leroy.McKinnon@parkland.ca