Parkland Corp. is selling its Florida retail and commercial businesses, the fuel marketer and convenience-store chain said on Tuesday. This is part of Parkland’s previously announced plan to divest up to $368.5 million of noncore assets.
- Parkland Corp. is No. 38 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
Parkland Corp., Calgary, Alberta, operates about 100 retail locations in Florida under Parkland USA. It also has nine cardlock facilities and four bulk storage plants and warehouses. The company said it expects to complete the sale within the next 12 to 18 months, and it has already received “substantial interest” in its Florida assets.
The sale of its Florida assets would cut in half Parkland USA’s convenience stores. It had a total of 211 stores in the United States as of Jan. 1.
“This disposition reflects our commitment to direct capital towards our highest return opportunities and maximize shareholder value,” said Bob Espey, president and CEO, Parkland. “We remain deeply committed to our northern US business, which is performing well and has strong connectivity with Canada.”
It expects to double its cash flow per share to $8.50 (Canadian dollars) and grow adjusted EBITDA to $2.5 billion (Canadian dollars) by 2028 through continued organic growth, lowering costs and optimizing its supply advantage.
Parkland said it continuously reviews all parts of its portfolio. While its Florida improvement plan is on track, it has more accretive investment opportunities in other parts of its business that can deliver stronger financial returns and growth, it said.
In its Aug. 1 earnings call, Espey said the company was “implementing tactical improvements in Florida.”
“These actions aim to increase margins, reduce costs and optimize in store results through refreshed merchandising strategies, rebrands and targeted promotions,” he said.
Every segment of international fuel distributor and convenience retailer Parkland Corp. delivered year-over-year growth in second-quarter 2024, except for Parkland USA, which represents about 10% of Parkland’s total adjusted EBITDA (earnings before interest, taxes, depreciation and amortization).
Parkland announced it was acquiring Florida retailer Urbieta Oil Co. in November 2021. The transaction included 94 retail locations, including the real estate purchase of 54 sties.
Parkland is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas. It’s the parent company of Parkland USA, which has more than 200 company-owned convenience stores in the United States under brands including On the Run.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.