CALGARY, Alberta — Parkland Corp., through its wholly owned U.S. subsidiary Parkland USA, has entered into an agreement to acquire substantially all of the assets of Urbieta Oil Co. The transaction includes 94 retail locations including the real estate purchase of 54 sites.
Medley, Fla.-based Urbieta’s operations are concentrated in the Miami market. This acquisition complements Parkland’s existing Florida commercial business by establishing a large retail and convenience growth platform with real estate in Miami.
“This acquisition advances our growth strategy to increase our convenience retail presence in a region where we have had success with fuel supply and commercial operations,” said Doug Haugh, president of Parkland USA. “Adding the Urbieta stores nearly doubles our U.S. retail business, provides immediate scale in a resilient, fast-growing market, and creates opportunity to meet customers’ needs through our On the Run convenience brand.”
Family owned and operated since 1974, Urbieta Oil is a retail, convenience and fuel distribution business with 2020 annual fuel sales of approximately 122.84 million gallons.
“In addition to adding an exceptional team, this acquisition provides a springboard for growth in the Southern Florida market with close proximity to our Caribbean business,” said Haugh. “The fragmented U.S. market presents a long runway of consolidation opportunities for Parkland to build scale, and better serve our customers. We will remain disciplined in our appraisal of the opportunities we see in front of us.”
The valuation metrics of this transaction reflect Urbieta Oil’s scale, significant retail mix and the purchase of strategic real estate, according to Parkland. Gross profit from the acquired assets is split approximately 85% retail and 15% commercial and wholesale operations. Parkland will fund 90% of the transaction consideration out of existing credit facility capacity, it said, and the remaining 10% with Parkland common shares issued from treasury. The transaction is subject to customary closing conditions, and the companies expect it to close in fourth-quarter 2021.
Calgary, Alberta-based Parkland Corp. is a major independent supplier and marketer of fuel and petroleum products. Its services customers in Canada, the United States, the Caribbean and the Americas through retail, commercial and wholesale channels. It is the second largest c-store operator in Canada with 650 retail outlets and more than 1,830 dealer sites.
Parkland provides locally relevant fuel brands and convenience-store offerings in the communities it serves. Under Charleston, S.C.-based Parkland USA, Parkland has made a series of U.S. acquisitions over the last few years. It has operations in 13 mostly Western states, with more than 100 c-stores.
Acquired brands include Farstad Oil, Superpumper, Harts and Rhinehart Oil. Company-owned stores include Superpumper locations in North Dakota, Montana, Wyoming and Minnesota; Harts Stores in Utah and Colorado; KB Oil KB Express locations in Utah; ConoMart Super Stores in Montana; Story Distributing in Montana, Carter Oil in Arizona and Conrad & Bischoff. in Idaho under the KJ's Super Stores brand; and Red Carpet Carwash in North Dakota.
In late 2020, Parkland USA acquired the license for the exclusive use of the On the Run brand in most of the United States.
Earlier this week, Parkland acquired Parker’s Energy, the wholesale fuel marketing division of Savannah, Ga.-based convenience-store company Parker’s Corp.
Parkland USA has approximately 400 dealers under the Sinclair, Exxon, Phillips 66, Arco, Cenex and Chevron brands, as well as approximately more than 40 commercial locations.
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