CALGARY, Alberta -- Parkland Fuel Corp. has entered into an agreement with Chevron Canada Ltd. to acquire all of the shares of Chevron Canada R&M ULC, which operates its Canadian integrated downstream fuel business that includes 129 Chevron-branded gas stations in the Vancouver, British Columbia, area.
Subject to satisfaction of customary closing conditions, Parkland will pay approximately $1.460 billion Canadian dollars ($1.1 billion U.S.), plus an estimated $186 million Canadian dollars ($138.6 million U.S.) in working capital.
The deal also includes 37 commercial cardlock and three marine fueling locations, a refinery in Burnaby, British Columbia, three terminals and a wholesale business that includes aviation fuel sales to the Vancouver International Airport.
"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 CEO 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."
The deal adds to Parkland’s company-owned retail footprint in the Vancouver metropolitan market and complements its existing 44 Chevron-branded retail sites in British Columbia. It also secures Parkland's position as Canada's largest fuel retailer by site count, supplying more than 1,800 stations, it said.
The commercial cardlock sites in British Columbia and Alberta and three marine fueling stations in Vancouver complement the Ultramar-branded cardlock network in Eastern Canada that it is acquiring from CST Brands Inc.
In August 2016, Parkland entered into an agreement with Laval, Quebec-based Alimentation Couche-Tard Inc. to acquire the majority of the Canadian business and assets of CST Brands Inc. for approximately $965 million Canadian dollars ($745.72 million U.S.).
The parties expect that deal to close in second-quarter 2017.
Parkland will invest in the retail operations and apply its expertise as a fuel marketer and convenience-store operator to enhance the customer experience. It intends to retain the key refinery management personnel.
The transaction is subject to the receipt of customary third-party consents and regulatory approvals, including approval from the Competition Bureau of Canada. Parkland said it expects the deal to close in fourth-quarter 2017.
Vancouver-based Chevron Canada is an indirect subsidiary of Chevron Corp., San Ramon, Calif.
Calgary, Alberta-based Parkland Fuel delivers gasoline, diesel, propane, lubricants, heating oil and other high-quality petroleum products to motorists, businesses, households and wholesale customers in Canada and in the United States.