CALGARY, Alberta — Parkland Fuel Corp., through its wholly owned U.S. subsidiaries, has entered into an agreement to acquire Kellerstrass Oil Co., including its 84-site dealer business.
Based in Salt Lake City, Kellerstrass Oil is a regional retail dealer and commercial fuel business operating in Utah, Idaho and Wyoming. In addition to the dealer business, the purchase includes trucking, routing and distribution assets, a strategic 17-car rail spur and storage assets and commercial cardlocks.
The acquisition will complement and strengthen Parkland Fuel’s existing Rockies Regional Operating Center, the company said.
“We continue to deliver on our growth strategy and expand our U.S. footprint,” said Doug Haugh, president of Parkland USA. “We expect this acquisition will support the growth of our North America diesel platform, create supply efficiencies and deliver logistical benefits. We are delighted to enter the Idaho market and expand our presence in Wyoming.”
This acquisition is at valuation metrics consistent with Parkland Fuel’s prior U.S. transactions, the company said. It will fund the deal out of existing credit facility capacity. The transaction is subject to customary closing conditions, and the company said it expects the transaction to close in first-quarter 2020.
- Parkland Fuel is No. 154 in CSP’s2019 Top 202 ranking of convenience-store chains by total number of company-operated U.S. retail locations.
Parkland is an independent supplier and marketer of fuel and petroleum products and convenience-store operator in Canada, the United States, the Caribbean and the Americas through retail, commercial and wholesale channels.
In Canada, Parkland Fuels owns, operates or supplies stations under the brands Chevron, Esso, On the Run, Marche Express, Fas Gas Plus, Pioneer, Race Trac (not to be confused with RaceTrac Petroleum in the United States) and Ultramar. It acquired most of the Canadian business and assets of CST Brands Inc. from Laval, Quebec-based Alimentation Couche-Tard Inc. in June 2017.
Parkland Fuel’s subsidiary Parkland USA has operations in 13 mostly Western U.S. states. Brands include Farstad Oil, Superpumper, Harts and Rhinehart Oil. Its 50 company-owned stores include 32 Superpumper locations in North Dakota, Montana, Wyoming and Minnesota; nine Harts Stores in Utah and Colorado; and nine KB Oil locations in Utah. It has 220 dealers under the Sinclair, Exxon, Phillips66, Arco, Cenex and Chevron brands, as well as approximately 20 commercial locations.