Parkland Corp. is asking its shareholders to support the acquisition of the company by Sunoco. This comes ahead of Parkland's shareholder meeting in June, which was originally scheduled for May but was pushed back after the company announced on May 5 that Sunoco would be buying it for $9.1 billion.
“This transformative transaction marks a pivotal moment for Parkland, delivering immediate value to company shareholders while positioning the combined company for long-term growth,” Parkland said in a statement Wednesday.
Calgary, Alberta-based Parkland urged shareholders to vote at the meeting for a special resolution approving the plan of arrangement, which details how the Sunoco transaction will be implemented. The transaction has been unanimously approved by Parkland’s board of directors.
- Sunoco LP is No. 93 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
The combined company will be one of the largest independent fuel distributors in the Americas, creating greater scale and stability, Parkland said, and is expected to grow returns, improve margins and increase distributable cash flow per unit.
The transaction also leverages complementary strengths of both companies to create a more diversified portfolio spanning Canada, the United States and the Caribbean, Parkland said. The combined company is expected to achieve $250 million in annual run-rate synergies by the third year, it said.
As part of the proposed plan, Sunoco will maintain Canadian headquarters in Calgary and significant employment levels in Canada.
Parkland’s largest shareholder, Simpson Oil Ltd., has criticized the convenience-retail company and fuel marketer in the past, encouraging it to conduct a strategic review that eventually led to the proposed sale with Sunoco and questioning Parkland President and CEO Bob Espey’s departure plan.
At the meeting, shareholders will vote to elect the slate of current Parkland board members: Felipe Bayon, Nora Duke, Espey, Sue Gove, Timothy Hogarth, Richard Hookway, Michael Jennings, Angela John, James Neate and Mariame McIntosh Robinson.
The meeting will be held at 9 a.m. MDT on June 24 at the Calgary TELUS Convention Centre.
Dallas-based Sunoco sold 204 c-stores to 7-Eleven Inc. in January 2024, including Stripes convenience stores and Laredo Taco Company restaurants, for approximately $1 billion. That left Sunoco with 75 company-owned retail stores, including 54 Aloha Island Mart c-stores in Hawaii.
Parkland is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas. It has more than 4,000 retail and commercial locations across Canada, the United States and the Caribbean region. This includes about 210 company-operated c-stores in the United States, under brands including On the Run.
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