Sunoco LP announced Monday that it plans to buy Parkland Corp. for $9.1 billion, two months after Parkland announced a strategic review of its business.
The transaction has been unanimously approved by Parkland’s board of directors, though it awaits shareholder and court green lights. The deal is expected to close during the second half of the year, the convenience-store companies said.
Calgary, Alberta-based Parkland is the second-largest c-store operator in Canada, with 650 retail outlets and 1,830 dealer sites. The company operates about 211 U.S. stores.
- Parkland Corp. is No. 38 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count. Sunoco is No. 96.
Dallas-based Sunoco sold 204 c-stores to 7-Eleven Inc. in January 2024, including Stripes convenience stores and Laredo Taco Company restaurants, for approximately $1 billion. That left Sunoco with 75 company-owned retail stores, including 54 Aloha Island Mart c-stores in Hawaii.
- Sunoco LP is No. 93 on CSP’s 2024 Top 202 ranking of U.S. convenience-store chains by store count.
“Today marks a significant milestone,” Parkland President and CEO Bob Espey said in a statement. “This transaction delivers immediate value for shareholders, including an attractive 25% premium. Sunoco shares our commitment to growth, customer service, operational excellence and ongoing investment in Canada, making our combined business stronger and better positioned for sustained success.”
Parkland shareholders are scheduled to vote on the transaction during their annual general meeting on June 24, a meeting that had originally been scheduled for Tuesday.
With the expanded cash flow, the combined company said it intends to reinvest in the U.S., Canada and the Caribbean.
“This strategic combination is a compelling outcome for Parkland shareholders,” Parkland Executive Chairman Michael Jennings said in a statement. “The Board unanimously recommends the proposed transaction, recognizing Sunoco’s commitment to safeguarding Canadian jobs, retaining the Calgary head office and further investing in Canada. This partnership creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas.”
Parkland has faced pressure from Simpson Oil Ltd., its largest shareholder, criticizing Espy’s delayed departure plan. Espy announced last month that he would leave the company after 14 years at its helm, but said he would stay on until a new CEO is named, the strategic review is complete or Dec. 31, whichever comes first.
Simpson Oil holds 19.8% of Parkland’s shares and has said the company is in desperate need of a refresh.
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