Parkland Fuel Corporation Closes Acquisition of Elbow River Marketing
RED DEER, AB, Feb. 15, 2013 /CNW/ - Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX: PKI), Canada's largest independent distributor and marketer of petroleum products, today announced that, having received all necessary approvals, it has completed its previously announced transaction to acquire the assets of Elbow River Marketing Limited Partnership ("Elbow River") from AvenEx Energy Corporation (TSX: AVF) (the "Acquisition"). The assets were acquired by Elbow River Marketing Limited, a wholly owned subsidiary of Parkland Fuel Corporation. All financial figures are stated in Canadian dollars.
The purchase price for the Acquisition consisted of $80 million in cash and the assumption of approximately $15 million in debt for a total of $95 million, representing a purchase multiple of 4.75 times annualized EBITDA of $20 million.
"The closing of this acquisition further demonstrates Parkland's ability to rapidly respond and execute quickly on emerging opportunities in the Canadian marketplace," said Bob Espey, President and Chief Executive Officer of Parkland. "I want to welcome Elbow River's highly respected team to the Parkland family. We look forward to working with Elbow River to expand and enhance Parkland's supply relationships and options."
Elbow River markets, transports and supplies petroleum products throughout North America utilizing their fleet of 1,200 rail cars and 270,000 bbls (43 million litres) of leased storage capacity. Through a strong network of relationships, Elbow River is able to connect buyers and sellers of liquefied petroleum gases (butane, propane, and condensate), crude oil, heavy fuel oil, and a growing portfolio of refined fuel and bio-fuel products. With more than 30 years of experience, Elbow River has developed the logistical capabilities and risk management approach to respond to emerging opportunities both rapidly and profitably.
Following the closing of the Acquisition, Parkland continues to maintain a strong balance sheet with considerable financial flexibility.
About Parkland Fuel Corporation
Parkland Fuel Corporation is Canada's largest independent marketer and distributor of petroleum products, managing a nationwide network of sales channels. We are Canada's local fuel company, delivering gasoline, diesel fuel, lubricants, heating oil and other products to businesses, consumers and wholesale customers through community based operators who care.
SOURCE: Parkland Fuel CorporationFor further information:
For investor and media inquiries please contact Tom McMillan, Director of Corporate Communications at 1-800-662-7177 ext 2533 or http://bit.ly/PKIContact. To sign up for Parkland's investor information services, please go to http://bit.ly/PKI-Info or visit www.parkland.ca.