Parkland Fuel Corporation Closes Acquisition of Elbow River Marketing
RED DEER, AB, Feb. 15, 2013 /CNW/ - Parkland Fuel Corporation ("Parkland" or
the "Corporation") (TSX: PKI), Canada's largest independent distributor and
marketer of petroleum products, today announced that, having received all
necessary approvals, it has completed its previously announced transaction to
acquire the assets of Elbow River Marketing Limited Partnership ("Elbow
River") from AvenEx Energy Corporation (TSX: AVF) (the "Acquisition"). The
assets were acquired by Elbow River Marketing Limited, a wholly owned
subsidiary of Parkland Fuel Corporation. All financial figures are stated in
The purchase price for the Acquisition consisted of $80 million in cash and
the assumption of approximately $15 million in debt for a total of $95
million, representing a purchase multiple of 4.75 times annualized EBITDA of
"The closing of this acquisition further demonstrates Parkland's ability to
rapidly respond and execute quickly on emerging opportunities in the Canadian
marketplace," said Bob Espey, President and Chief Executive Officer of
Parkland. "I want to welcome Elbow River's highly respected team to the
Parkland family. We look forward to working with Elbow River to expand and
enhance Parkland's supply relationships and options."
Elbow River markets, transports and supplies petroleum products throughout
North America utilizing their fleet of 1,200 rail cars and 270,000 bbls (43
million litres) of leased storage capacity. Through a strong network of
relationships, Elbow River is able to connect buyers and sellers of liquefied
petroleum gases (butane, propane, and condensate), crude oil, heavy fuel oil,
and a growing portfolio of refined fuel and bio-fuel products. With more
than 30 years of experience, Elbow River has developed the logistical
capabilities and risk management approach to respond to emerging opportunities
both rapidly and profitably.
Following the closing of the Acquisition, Parkland continues to maintain a
strong balance sheet with considerable financial flexibility.
About Parkland Fuel Corporation
Parkland Fuel Corporation is Canada's largest independent marketer and
distributor of petroleum products, managing a nationwide network of sales
channels. We are Canada's local fuel company, delivering gasoline, diesel
fuel, lubricants, heating oil and other products to businesses, consumers and
wholesale customers through community based operators who care.
For investor and media inquiries please contact Tom McMillan, Director of
Corporate Communications at 1-800-662-7177 ext 2533
orhttp://bit.ly/PKIContact. To sign up for Parkland's investor information
services, please go to http://bit.ly/PKI-Info or visitwww.parkland.ca.
SOURCE: Parkland Fuel Corporation
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-0- Feb/15/2013 17:20 GMT
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