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
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
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 Corporation
For 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.