Press release from Marketwire
Parkland Fuel Corporation Moves Toward National Propane Offering With Purchase of Sparling's Propane
Sparling's Propane Provides Business Platform to Extend Propane Offering Throughout Parkland's National Footprint
Tuesday, April 02, 2013
Parkland Fuel Corporation Moves Toward National Propane Offering With Purchase of Sparling's Propane09:02 EDT Tuesday, April 02, 2013
RED DEER, ALBERTA--(Marketwired - April 2, 2013) - Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX:PKI), Canada's largest independent distributor and marketer of fuel products, today announced that it has acquired all of the outstanding shares (the "Acquisition") of Sparling's Propane Co. Limited. ("Sparling's" or "Sparling's Propane"). In accordance with the terms of the agreement the transaction price will not be disclosed.
- Propane volumes of more than 120 million litres annually;
- Propane market in Ontario growing at more than 5% annually; and
- Customer retention in excess of 99%.
- Will leverage Elbow River Marketing's propane supply options.
- Sparling's business platform will be utilized to grow the propane business across Canada; and
- Adds propane to multi-product offering in Eastern Canada commercial operations with immediate cross-selling opportunities.
"The acquisition of Sparling's Propane makes Parkland a major competitor in the Canadian propane market place," said Bob Espey, President and Chief Executive Officer of Parkland. "Sparling's, along with our western propane operations, will also be able to leverage new propane supply options that we now have access to through Elbow River Marketing. Together, we now have the platform for the aggressive development of propane opportunities across all of our markets."
Sparling's' focus on customer service over more than 60 years has helped them to become the second largest propane retailer in Ontario. From their six branch locations in Southern Ontario, Sparling's delivers more than 120 million litres of propane annually to approximately 25,000 customers.
"Both companies share a commitment to growth through service excellence, and this creates an opportunity for Parkland and Sparling's to capture a larger share of the Canadian propane market," said Steven Sparling, President and Chief Executive Officer of Sparling's Propane. "While the business opportunities ahead of us are compelling, Sparling's customers can expect the same great level of customer service."
The Acquisition has received all necessary approvals. Parkland's current financial position is sufficient to fund this transaction. Parkland continues to maintain a strong balance sheet with considerable financial flexibility.
2013 Penny Plan Update
On April 15, 2013 Parkland will host an investor event in Toronto for analysts and institutional investors that will review this transaction in the context of Parkland's five year growth strategy. The event will start at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time).
Interested analysts and institutional investors who have not received an invitation should contact Parkland Fuel Corporation investor relations at the information below. The registration deadline is April 8, 2013.
Investors interested in viewing the webcast of this event are advised to log into the webcast slide presentation 10 minutes before the start time at:
To access the conference call by telephone from within Canada dial toll free 1- (888) 241-0394. International callers or callers from the Toronto area should use (647) 427-3413. Please connect approximately 10 minutes prior to the beginning of the call and quote the conference ID: 2208 8801.
The webcast will be available within 24 hours of the conference call and will remain available at the link above for one year.
Forward Looking Information
Certain information included herein is forward-looking. Forward-looking statements include, without limitation, statements regarding the anticipated benefits of the Acquisition and additional opportunities which may be available as a result of the Acquisition, the ability of Parkland to leverage Elbow River Marketing's propane supply options, the cross-selling opportunities which may result through the Acquisition, Parkland's competitive position subsequent to the Acquisition, the opportunities and synergies which may result from the Acquisition, Parkland's future financial position 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 accretive effects of acquisitions and the anticipated benefits of acquisitions. 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 Parkland's 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 Parkland'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: failure to obtain necessary regulatory or other third party consents and approvals; the failure to achieve the anticipated benefits of the Acquisition; 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 Parkland 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.
About Parkland Fuel Corporation
Parkland Fuel Corporation is Canada's largest independent marketer and distributor of fuel products, managing a nationwide network of sales channels. We are Canada's local fuel company, delivering gasoline, diesel fuel, propane, lubricants, heating oil and other products to businesses, consumers and wholesale customers through community based operators who care.
About Sparling's Propane
Sparling's Propane, Ontario's second largest propane retailer, has been providing businesses and homes with propane and related products and services for more than 60 years. Sparling's is committed to bringing professional people, reliable supply and consistent pricing to their customers every day. Sparling's dedicated propane service team is the largest in Ontario. Their commitment to safety and service is reflected in their in-house emergency response team and Sparling's leading participation in GASCheck®.
FOR FURTHER INFORMATION PLEASE CONTACT:
Parkland Fuel Corporation- Investor and Media Inquiries
Director of Corporate Communications
1-800-662-7177 ext. 2533
Parkland Fuel Corporation- Investor Information Services