Parkland to acquire Chevron Canada's downstream fuel business

Parkland Fuel Corporation (Parkland) has announced that it has entered into an agreement with Chevron Canada Limited (CCL) to acquire all of the shares of Chevron Canada R&M ULC, which operates its Canadian integrated downstream fuel business (the acquisition). The acquisition places important British Columbia infrastructure under experienced Canadian ownership. The business acquired as part of the Acquisition (collectively, the acquired business) consists of: a) 129 Chevron-branded retail service stations principally located in Metro Vancouver, which complement Parkland's existing 44 Chevron-branded sites in British Columbia; b) 37 commercial cardlock and three marine fuelling locations; c) a complimentary refinery in Burnaby, terminals located in Burnaby, Hatch Point, and Port Hardy, British Columbia, and a wholesale business which includes aviation fuel sales to the Vancouver International Airport.

Subject to satisfaction of customary closing conditions, Parkland will pay approximately US$1460 million (US$1100 million), plus an estimated US$186 million in working capital for the acquired business.

"This accretive acquisition further strengthens our supply-focused business model and adds significant scale with the premier Chevron retail brand and network in British Columbia," said Bob Espey, President and Chief Executive Officer of Parkland. "Parkland is acquiring a highly integrated business which adds significant supply infrastructure and logistics capability to support Parkland's existing operations. The refinery in Burnaby is an important asset to Metro Vancouver and British Columbia and we will continue to operate it with the capable and experienced professionals who manage the refinery today. We look forward to welcoming the Chevron team to our company, and to deepening our relationships in British Columbia."