Mergers & Acquisitions

Parkland Corp. Acquires 2 U.S. Retailers

Adds another 13 retail sites and 40 dealer locations
Parkland Fueling

CALGARY, Alberta — Retailer and fuel wholesaler Parkland Corp. announced two transactions that will add another 13 retail sites and approximately 40 retail dealers in four states to Parkland’s U.S. presence.

Story Distributing Co.

Parkland USA has purchased the assets of Story Distributing Co., operators of Casey’s Corner Convenience Stores anda full-line branded wholesaler and retailer of petroleum fuel products in Montana.

“We’ve been rooted in the Bozeman community since 1976, and our employeesare the foundation of our organization. They work very hard every day to serve our customers, and this acquisition with Parkland allows them more advancementopportunities to grow and serve our Bobcat community,” said Dan Alexander, president of Story Distributing.

Story Distributing Co., an ExxonMobil, Phillips 66 and Sinclair branded wholesaler, was formed in 1976 by Doug Alexander when he purchased the assets of Story Motor Supply, the oldest operating petroleum distributor in the state of Montana with a history going back to 1905.

Under Dan Alexander’s stewardship the family organization has doubled its volume in the last four years through expansion of the Casey’s Corner retail geography and store formats, building its dealer fuel supply business to 29 dealers in a five-state area and expanding commercial fuel services throughout the Bozeman market.

This acquisition adds scale and density to Parkland’s existing Northern Tier Regional Operating Center (ROC), Parkland said, and expands its presence in the Montana and Idaho markets.

Corner Capital Advisors LLC, Santa Barbara, represented Dan Alexander, Story Distributing and its affiliates in a M&A financial advisory capacity through its structured sale process of the business assets, while Williams Mullen served as legal counsel to Story Distributing in the sale.

Carter Oil Co.

Parkland has also acquired Carter Oil Co., a wholesale and commercial fuel distributor based in Flagstaff, Ariz.

Carter Oil has been serving Northern Arizona since 1974, and operates a cardlock and travel center, in addition to its wholesale and commercial fuel distribution operations.

“We liked how Parkland’s values mirrored ours, and this mattered as we looked to sell,” said Paul Carter, president of Carter Oil. “We wanted to make sure our employees are taken care of, and our customers continue to receive the great service they are used to. We are confident this acquisition with Parkland will continue our tradition of putting people first.”

This acquisition complements Parkland’s existing Utah and Arizona operations and expands our presence in the high-growth regions of Northern and Western Arizona,” said Nick Carter, vice president of Carter Oil. Nick Carter will remain with Parkland USA as regional branch manager of Northern Arizona.

The Story and Carter acquisitions are the latest in Parkland’s efforts to grow its presence in the United States. Although the company did not announce that it will rebrand the stores acquired in these deals, it has in the past said all its stores would eventually become On the Run, a process that could take several years.

“We continue to build momentum in the U.S. and advance our growth strategy,” said Doug Haugh, president of Parkland USA. “These acquisitions expand our presence in high-growth regions and provide additional opportunities to leverage our On the Run convenience-store brand and increase our supply and distribution capabilities. We see an attractive pipeline of opportunities and are well positioned for further growth.”

The acquisitions are at valuation metrics consistent with Parkland’s prior U.S. transactions and will be funded with cash on hand and existing credit facility capacity, the company said. The transactions are subject to customary closing conditions, with Carter expected to close in the fourth quarter of 2020 and Story in early 2021.

Charleston, S.C.-based Parkland USA is No. 121 on CSP's 2020 Top 202 ranking of U.S. c-store chains by size. It has operations in 13 mostly Western U.S. states. Brands include Farstad Oil, Superpumper, Harts and Rhinehart Oil. Along with the new ConoMart Super Stores, its 58 company-owned stores include Superpumper locations in North Dakota, Montana, Wyoming and Minnesota; Harts Stores in Utah and Colorado; and KB Oil KB Express locations in Utah. It has 324 dealers under the Sinclair, Exxon, Phillips 66, Arco, Cenex and Chevron brands, as well as approximately 42 commercial locations.

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