Parkland Income Fund acquires fuel distribution business on Vancouver Island and closes previously announced credit facility

    RED DEER, AB, June 15 /CNW/ - Parkland Income Fund (TSX: PKI.UN) today
announced that it has reached an agreement in principle to acquire the fuel
distribution business of Columbia Fuels Ltd. ("Columbia") for approximately
$34.5 million. Headquartered in Victoria BC, Columbia is a fuel distribution
company specializing in home heating oil, bulk petroleum and bio fuels and
operates bulk fuel terminals on Vancouver Island and the Sunshine Coast region
of British Columbia. Completion of the acquisition is subject to, among other
things, the settlement of final documentation and obtaining any necessary
third party consents.  It is presently expected that the acquisition will
close on or about June 16, 2009 with an effective date of June 1, 2009.

    Parkland's President and CEO Mike Chorlton said "The proposed acquisition
of Columbia is exciting as it is expected to provide a strong operating
platform on Vancouver Island including a strong customer base and storage and
delivery capability. It is expected to be accretive to Parkland earnings
    The acquisition price of approximately $34.5 million consists of the
issuance of Class C Limited Partnership Units valued at $2,000,000 (at the 10
day volume weighted average price of Parkland units trading on the TSX
immediately prior to the effective date of the acquisition) and the balance
drawn from Parkland's cash on hand and incremental borrowing. Class C Limited
Partnership Units receive the same monthly distributions as Fund Units, have
voting rights and are convertible into regular Fund units.
    Parkland has entered into a credit agreement which will, subject to the
satisfaction of customary banking conditions, increase Parkland's credit line
availability to $265 million from $169 million. This includes a working
capital line, a significant letter of credit facility and a capital facility.
The capital facility is intended to fund acquisitions as well as future
organic growth expenditures.

    Parkland Income Fund currently operates retail and wholesale fuels and
convenience store businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels
and Short Stop Food Stores brands and through independent branded dealers, and
transports fuel and other products through its Distribution division. With
approximately 625 locations, Parkland has developed a strong market niche in
Canadian non-urban markets focused in the West and Ontario. The Fund supplies
propane, bulk fuel, heating oil, lubricants, industrial fluids, agricultural
inputs and associated services to commercial and industrial customers in
Alberta, British Columbia and the Yukon Territory under the Neufeld, United
Petroleum and Great Northern Oil brands. Additionally, Parkland operates the
Bowden refinery near Red Deer, Alberta as a storage and contract-processing
    Parkland is focused on creating and delivering value for its unitholders
through the continuous refinement of its site portfolio, increasing revenue
diversification through growth in non-fuel revenues and active supply chain
    The Fund's units trade on the Toronto Stock Exchange (TSX) under the
symbol PKI.UN. For more information, visit

    Certain information included herein is forward-looking. Forward-looking
statements include, without limitation, statements regarding the future
financial position, business strategy, budgets, projected costs, capital
expenditures, financial results, taxes and plans and objectives of or
involving Parkland. Many of these statements can be identified by looking for
words such as "believe", "expects", "expected", "will", "intends", "projects",
"projected", "anticipates", "estimates", "continues", or similar words and
include but are not limited to, statements regarding the closing of the
acquisition and timing thereof, accretive effects of the acquisition,the
anticipated benefits of the acquisition and the availability of additional
funds under Parkland's credit line. Parkland believes the expectations
reflected in such forward-looking statements are reasonable but no assurance
can be given that these expectations will prove to be correct and such
forward-looking statements should not be unduly relied upon. Forward-looking
statements are not guarantees of future performance and involve a number of
risks and uncertainties some of which are described in the Fund's annual
report, annual information form and other continuous disclosure documents.
Such forward-looking statements necessarily involve known and unknown risks
and uncertainties and other factors, which may cause the Fund's actual
performance and financial results in future periods to differ materially from
any projections of future performance or results expressed or implied by such
forward-looking statements. Such factors include, but are not limited to:
general economic, market and business conditions; industry capacity;
competitive action by other companies; refining and marketing margins; the
ability of suppliers to meet commitments; actions by governmental authorities
including increases in taxes; changes in environmental and other regulations;
and other factors, many of which are beyond the control of Parkland. Any
forward-looking statements are made as of the date hereof and the Fund does
not undertake any obligation, except as required under applicable law, to
publicly update or revise such statements to reflect new information,
subsequent or otherwise.

For further information:

For further information: Parkland Industries Ltd., Administrator of
Parkland Income Fund: Red Deer: Mike W. Chorlton, President and CEO, (403)
357-6400; John G. Schroeder, Vice President and CFO, (403) 357-6400; If you
prefer to receive Company news releases via e-mail, please request at

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