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 30, 2010.
"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 office locations.
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 card-lock facilities.
Cautionary Statement Regarding Forward-Looking Information and Statements
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 statements").
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 protected].
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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 [email protected].