RED DEER, AB, Dec. 30 /CNW/ - Parkland Income Fund ("Parkland" or the
"Fund") (TSX: PKI.UN), Canada's largest independent fuel distributer
and marketer, today announced that it has acquired Island Petroleum
Products Ltd. ("Island Petroleum") based out of Prince Edward Island.
Island Petroleum, which generated more than 70 million litres of fuel
sales last year, was acquired with a combination of cash and equity
valued at $22.6 million (including working capital) effective December
"We continue to execute a strategy of growing our share of the Canadian
fuel distribution market through acquisitions that are immediately
accretive on an earnings and cash flow basis," said Mike Chorlton,
President and Chief Executive Officer of Parkland. "Island Petroleum
is the leading independent heating fuel supplier on Prince Edward
Island, and their focus on customer service excellence and reliable
operations have allowed them to garner a loyal and growing customer
base on Prince Edward Island. Overall, this operation is a great fit
with Parkland, and we welcome the Island Petroleum team onboard."
The acquisition includes 55 staff, 25 delivery trucks, 25 service
vehicles, 13 card lock locations (both in-land and marine), and 4
Island Petroleum is the largest full-service home heating company on
Prince Edward Island, where heating oil provides for more than 75% of
the total heating energy needs of the province. Heating oil's share of
the heating energy market is increasing in this region.
More than 50% of Island Petroleum's fuel sales are heating oil, which
means that the majority of the Company's fuel volume is sold during the
five month peak heating season from November through March. Weather
conditions have a significant impact on demand for heating fuel
products. The company also maintains commercial accounts and haulage
activities on a year round basis, and services in-land and marine
Cautionary Statement Regarding Forward-Looking Information and
Certain statements contained in this news release, including statements
that contain words such as "could", "should", "can", "anticipate",
"estimate", "propose", "plan", "expect", "believe", "will", "may" and
similar expressions and statements relating to matters that are not
historical facts constitute "forward-looking information" within the
meaning of applicable Canadian securities legislation and
"forward-looking statements" within the meaning of the "safe harbor"
provisions of the United States Private Securities Litigation Reform
Act of 1995 (collectively, "forward-looking information and
In particular, this news release contains forward-looking information
and statements relating to the expectations of the Fund and the
administrator of the Fund regarding the proposed Arrangement including,
but not limited to the timing of completion thereof.
These forward-looking information and statements are based on certain
assumptions and analysis made by the Fund in light of its experience
and its perception of historical trends, current conditions and
expected future developments as well as other factors it believes are
appropriate in the circumstances. However, whether actual results,
performance or achievements will conform to the Fund's expectations and
predictions is subject to a number of known and unknown risks and
uncertainties which could cause actual results to differ materially
from the Fund's expectations. Such risks and uncertainties include, but
are not limited to, failure to complete the Arrangement or to realize
the anticipated benefits of the Arrangement. Consequently, all of the
forward-looking information and statements made in this news release
are qualified by these cautionary statements and there can be no
assurance that the actual results or developments anticipated by the
Fund will be realized or, even if substantially realized, that they
will have the expected consequences to, or effects on, the Fund or its
business or operations. Readers are therefore cautioned not to place
undue reliance on such forward-looking information and statements.
Except as may be required by law, the Fund assumes no obligation to
update publicly any such forward-looking information and statements,
whether as a result of new information, future events or otherwise.
About Parkland Income Fund
Parkland Income Fund ("Parkland") is Canada's largest independent
marketer and distributer of fuels, managing a nationwide network of
sales channels for retail, commercial, wholesale and home heating fuel
customers. Parkland's mission is to be the most trusted source of
convenience for fuel and related products focused on non-urban
markets. Our family of brands includes: Bluewave Energy, Columbia
Fuels, Great Northern Oil, Neufeld Petroleum & Propane, United
Petroleum Products, Fas Gas Plus and Race Trac Gas. We are Canada's
local fuel company, delivering competitive fuel products and serving
Canadian communities through local operators who care. For more
information please visit www.parkland.ca.
Parkland units and convertible debentures trade on the Toronto Stock
Exchange (TSX) under the symbols PKI.UN, PKI.DB and PKI.DB.A. For
investor and media inquiries, or to be added to the email news alert
service, please contact Tom McMillan, Investor Relations Manager at
403-356-6722 or email@example.com.
SOURCE Parkland Fuel Corporation
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For investor and media inquiries, or to be added to the email news alert service, please contact Tom McMillan, Investor Relations Manager at 403-356-6722 or firstname.lastname@example.org.