CALGARY, Alberta — Parkland Corp., through its wholly owned U.S. subsidiary Parkland USA, has entered into an agreement to acquire Eagle Stops, Ekker Eateries and GJE Enterprises, which collectively own and operate seven convenience stores in Utah and Colorado. Parkland USA also has acquired the related assets of Sevier Valley Oil Co. Inc. (SVO). The deal will advance Parkland USA’s strategy to expand the On the Run convenience-store brand in the Unites States.
Eagle Stop operates three Silver Eagle c-stores in Heber City and Panguitch, Utah, and one Sinclair c-store in Estes Park, Colo. The Heber City location and a Panguitch location feature Subway and a Yogurtland.
“This acquisition affords us the opportunity to improve the lives of our team members and continue the experiences our guests have day in and day out.” said Nate Houston, co-owner of Eagle Stops.
“Our values align with Parkland’s values, and we have confidence in Parkland’s ability to operate c stores with a strong customer focus,” said Eric Houston, co-owner of Eagle Stops.
GJE Enterprises and Ekker Eateries operate three c-stores in Utah, a Silver Eagle location in Elsinore Utah featuring a Carl’s Jr and two in Salina, Utah, with one Phillips 66 location featuring a Carl’s Jr and one Sinclair station.
“Our c stores are a part of our communities, and we know this will only continue with Parkland’s On the Run brand,” said Garrett Ekker, owner of GJE Enterprises, Ekker Eateries and co-owner of Eagle Stops.
“These convenience stores and QSRs deliver great value to their customers and communities and are a welcome addition to our family of retail stores,” said Dan Dunstan, vice president of retail for Parkland USA.
Sevier Valley Oil have been in operation since 1949 and is based in Richfield, Utah. The companies deliver fuel, lubricants and propane products and services in Utah, northern Arizona and eastern Nevada. The acquisition adds seven company retail locations, and the commercial business includes two Sinclair cardlocks and three bulk plants that service more than 20 retail dealers.
Calgary, Alberta-based Parkland acquired the license for the exclusive use of the On the Run trademark in the majority of U.S. states in September. It is among several recent examples of convenience retailers rebrands, refreshes and brand expansions by chains of all sizes.
“We continue to expand our U.S. footprint and execute on our growth strategy,” said Doug Haugh, president of Parkland USA. (Haugh was among CSP's Power 20 for 2020.) “This acquisition meaningfully expands our retail presence in rapidly growing southern Utah and presents a fantastic opportunity to leverage our North American On the Run convenience-store brand, enhance our customer proposition and drive incremental value.”
He said that the acquisition “strongly complements” the company’s existing Rockies Regional Operating Center and positions it for further organic and acquisition growth in Nevada and Arizona.
“We are delighted to welcome Garrett Ekker and the SVO team to Parkland and look forward to the continued growth of our USA business,” Haugh said.
This acquisition is at valuation metrics consistent with Parkland’s prior U.S. transactions and will be funded out of existing credit facility capacity, the company said. SVO’s annual fuel and petroleum product volume of approximately 92.5 million gallons contains a mix of retail, wholesale and commercial volume consistent with Parkland’s existing U.S, segment, it said.
The transaction is subject to customary closing conditions, and the companies said that they expect it to close in fourth-quarter 2020.
Parkland is an independent supplier and marketer of fuel and petroleum products and a c-store operator. It services customers in Canada, the United States, the Caribbean and the Americas through three channels—retail, commercial and wholesale.
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 Couche-Tard in June 2017.
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.