Press release from CNW Group
Parkland Fuel Corporation Finalizes Acquisition of Cango
Friday, June 24, 2011
RED DEER, AB, June 24, 2011 /CNW/ - Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX: PKI), Canada's largest independent fuel distributor and marketer, today announced that it has finalized the all-cash acquisition of the business of Cango Inc. ("Cango"), a major independent retail fuel marketer in Ontario. Cango supplies more than 400 million litres of petroleum products to a network of 155 retail sites including 126 dealers.
"The Cango transaction increases our network in Ontario by 155 sites, further strengthening our Ontario presence and positioning us for further growth in this important market," said Bob Espey, President and Chief Executive Officer of Parkland. "Cango is expected to increase Parkland's annual fuel sales to over four billion litres annually and strengthens our supply position in Ontario."
As previously announced on May 12, 2011, the acquisition of the business of Cango Inc. and the purchase of seven Save on Foods retail fuel outlets from the Overwaitea Food Group, together representing annualized fuel volumes of 425 million litres, cost approximately $22 million in aggregate. Due to a confidentiality agreement with one of the parties that is still in effect, Parkland is unable to disclose the individual costs for these transactions.
About Parkland Fuel Corporation
Parkland Fuel Corporation is Canada's largest independent marketer and distributor of petroleum products, managing a nationwide network of fuel 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 by community based operators who care.
For further information:
For investor and media inquiries please contact Tom McMillan, Investor Relations Manager at firstname.lastname@example.org or 1-800-662-7177 ext 6722.