RED DEER, Alberta -- Parkland Income Fund said that it has completed the acquisition of Bluewave Energy LP, making Parkland Canada's largest national independent fuel distributor. The acquisition has received all necessary third-party and regulatory approvals, including consent under the Competition Act and from the TSX.
Parkland president and CEO Mike Chorlton said, "This is an exciting step for Parkland that broadens our geographic coverage and diversifies the markets we pursue, while following our strategic focus on fuel marketing to nonurban markets."
Now that [image-nocss] the acquisition is complete, Parkland will integrate the Bluewave Energy team into the operations of the combined business. Bill Sanford, Bluewave Energy's former president and CEO has been appointed president of Parkland's Bluewave Division.
"The ability to better serve customers across the country makes this a great fit for our companies," said Sanford. "This acquisition brings together two really impressive teams and strengthens our collective financial position for continued growth."
Effective Jan. 31, 2010, Parkland increased its total bank credit facilities to $400 million from $265 million and has issued 1,240,000 Class C Limited Partnership Units to certain Bluewave unitholders at the previously disclosed price of $12.55 per unit. Parkland acquired 100% of Bluewave Energy for $231 million, subject to further post closing adjustments related to working capital on closing which peak in the winter.
Bluewave Energy is a petroleum distribution company with branches throughout Canada. As the largest branded distributor of Shell products in Canada, Bluewave Energy delivers heating oil, diesel fuel, gasoline, lubricants and related products to residential customers and commercial customers in the agriculture, transportation, construction and upstream oil and gas sectors.
It also sells, services and finances heating, air conditioning, water heating and fuel storage equipment. In total, Bluewave Energy services more than 72,000 customers via a fleet of 185 delivery trucks.
Bluewave Energy's management team has grown the business both organically and through more than 15 acquisitions since 1999.
Parkland Income Fund operates retail and wholesale fuels and convenience store businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels and Short Stop Food Stores brands and through independent branded dealers, and transports fuel and other products through its distribution division. With approximately 612 locations, Parkland has developed a market niche in Canadian nonurban markets focused in the West and Ontario. It supplies propane, bulk fuel, heating oil, lubricants, industrial fluids, agricultural inputs and associated services to commercial and industrial customers in Alberta, British Columbia and the Yukon Territory under the Neufeld, United Petroleum, Columbia Fuels and Great Northern Oil brands. Also, Parkland operates the Bowden refinery near Red Deer, Alberta, as a storage and contract processing site.
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