CALGARY, Alberta — Parkland Corp., through its Parkland USA subsidiary, has entered into an agreement to acquire the assets of Lynch Oil, including five large-format convenience stores and forecourts, two travel centers and two standalone car washes. The retail brands include Mr. Gas, Mr. Wash and Bent Bean coffee shop.
Lynch Oil will operate within Parkland USA’s Pacific Northwest regional operations center (ROC) in Idaho.
Family owned and operated since 1923, Burley, Idaho-based Lynch Oil’s operations are concentrated in southern and central Idaho.
The acquisition strengthens Parkland’s growth platform across the Pacific Northwest and complements its existing retail, commercial and wholesale businesses in Idaho, the company said. It adds annual fuel sales of more than 47 million gallons. Gross profit from the acquired assets is split roughly 60% retail, convenience, car wash and non-fuel, and 40% commercial and wholesale.
The wholesale and distribution business includes propane, fuel, lubricants, diesel exhaust fluid (DEF) and ice under the brands of Lynch Energy, Lynch Natural Resources, Magic Ice and a rail storage terminal located in Jerome, Idaho.
“This acquisition advances our strategy by strengthening our retail convenience network and supply advantage in a growing market where we already have a significant presence,” said Doug Haugh, president of Parkland USA.
“Our company legacy has been the way our family, starting with my grandfather who started our business, has treated our employees and customers for the past 100 years. Our culture is phenomenal, and we looked for a company that aligned with our values when we looked to sell,” said Jim Lynch, president of Lynch Oil. “We found it in Parkland. Their values of product, delivery and family atmosphere, coupled with their ambitious growth opportunities, confirmed our legacy will not only continue but thrive in the future.”
Parkland will fund 90% of the transaction consideration out of existing credit facility capacity, and the remaining 10% with Parkland common shares issued from treasury. The companies expect the transaction to close in fourth-quarter 2021.
Calgary, Alberta-based Parkland 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.
The company 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.
In late 2020, Parkland USA acquired the license for the exclusive use of the On the Run brand in most of the United States.
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.
Earlier this month, Parkland announced the acquisitions of Urbieta Oil, including 94 retail locations in Florida, and 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 more than 40 commercial locations.
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