Press release from Marketwire
Parkland Fuel Corporation Enters Quebec Market with New Supply Agreement and Assumption of TransMontaigne Business
-Acquisition of TransMontaigne Marketing Canada Supply Business Adds More than 500 Million Litres in Wholesale Fuel Volumes in Quebec and Ontario and Provides New Supply Platform for Growth in the Province of Quebec-
Tuesday, April 02, 2013
Parkland Fuel Corporation Enters Quebec Market with New Supply Agreement and Assumption of TransMontaigne Business15:00 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 entered into agreements (the "Arrangement") to be Morgan Stanley's fuel marketer in the province of Quebec; to assume the customers and assets of TransMontaigne Marketing Canada Inc. ("TMCI"); and to lease terminal storage through CanTerm Canadian Terminals Inc. in both Montreal and Quebec City. The Arrangement is expected to close on May 2, 2013.
- Acquisition of TMCI business through supply agreement and assumption of accounts receivable;
- More than 500 million litres of low margin wholesale fuel volumes annually in Quebec and Ontario; and
- A new supply platform to support growth in Quebec.
- Accomplishes Parkland's objective to establish access to fuel terminal storage in Eastern Canada;
- Adds a new supply partner through Morgan Stanley to further enhance Parkland's supply options in Ontario and Quebec; and
- Adds to Parkland's strategic supply infrastructure portfolio.
- Ontario business to be immediately integrated into Parkland's operating platform; and
- Quebec office to remain intact under the operating name Les Pétroles Parkland.
TransMontaigne Marketing Canada Inc. is a leading wholesale marketer of fuel products in Ontario and Quebec selling conventional gasoline, E10 ethanol gasoline, ultra-low sulfur diesel, biodiesel blends, heating oil, and heavy fuel oil. TMCI has established a track record of being a reliable supplier of quality petroleum products through a focus on safety, efficiency, flexibility and customer service.
"Adding Morgan Stanley to our national supply portfolio, coupled with access to fuel terminal storage, provides an excellent platform for us to grow and acquire volume in Quebec," said Bob Espey, President and Chief Executive Officer of Parkland. "While only modestly profitable at this time, this is a strategic acquisition with significant growth potential."
The Arrangement is subject to the receipt of all necessary third party and regulatory approvals including approval under the Competition Act.
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. It 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 Arrangement, Parkland's future financial position, business and growth strategies, including the manner in which such strategies will be implemented, budgets, projected costs, sources of growth, capital expenditures, financial results, taxes, future acquisitions and the efficiencies to be derived therefrom, effectiveness of internal controls, sources of funding for growth capital expenditures, anticipated dividends and the amount thereof, if any, to be declared by Parkland Fuel Corporation, 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 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 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 Arrangement; 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.
To sign up for Parkland's investor information services, please go to http://bit.ly/PKI-Info or visit www.parkland.ca.
FOR FURTHER INFORMATION PLEASE CONTACT:
Parkland Fuel Corporation
Director of Corporate Communications
1-800-662-7177 ext 2533