Parkland Fuel Corporation Moves Toward National Propane Offering With Purchase
of Sparling's Propane
Sparling's Propane Provides Business Platform to Extend Propane
Offering Throughout Parkland's National Footprint
RED DEER, ALBERTA -- (Marketwired) -- 04/02/13 -- Parkland Fuel
Corporation ("Parkland" or the "Corporation") (TSX:PKI), Canada's
largest independent distributor and marketer of fuel products, today
announced that it has acquired all of the outstanding shares (the
"Acquisition") of Sparling's Propane Co. Limited. ("Sparling's" or
"Sparling's Propane"). In accordance with the terms of the agreement
the transaction price will not be disclosed.
-- Propane volumes of more than 120 million litres annually;
-- Propane market in Ontario growing at more than 5% annually; and
-- Customer retention in excess of 99%.
-- Will leverage Elbow River Marketing's propane supply options.
-- Sparling's business platform will be utilized to grow the propane
business across Canada; and
-- Adds propane to multi-product offering in Eastern Canada commercial
operations with immediate cross-selling opportunities.
"The acquisition of Sparling's Propane makes Parkland a major
competitor in the Canadian propane market place," said Bob Espey,
President and Chief Executive Officer of Parkland. "Sparling's, along
with our western propane operations, will also be able to leverage
new propane supply options that we now have access to through Elbow
River Marketing. Together, we now have the platform for the
aggressive development of propane opportunities across all of our
Sparling's' focus on customer service over more than 60 years has
helped them to become the second largest propane retailer in Ontario.
From their six branch locations in Southern Ontario, Sparling's
delivers more than 120 million litres of propane annually to
approximately 25,000 customers.
"Both companies share a commitment to growth through service
excellence, and this creates an opportunity for Parkland and
Sparling's to capture a larger share of the Canadian propane market,"
said Steven Sparling, President and Chief Executive Officer of
Sparling's Propane. "While the business opportunities ahead of us are
compelling, Sparling's customers can expect the same great level of
The Acquisition has received all necessary approvals. Parkland's
current financial position is sufficient to fund this transaction.
Parkland continues to maintain a strong balance sheet with
considerable financial flexibility.
2013 Penny Plan Update
On April 15, 2013 Parkland will host an investor event in Toronto for
analysts and institutional investors that will review this
transaction in the context of Parkland's five year growth strategy.
The event will start at 9:00 a.m. Eastern Time (7:00 a.m. Mountain
Interested analysts and institutional investors who have not received
an invitation should contact Parkland Fuel Corporation investor
relations at the information below. The registration deadline is
April 8, 2013.
Investors interested in viewing the webcast of this event are advised
to log into the webcast slide presentation 10 minutes before the
start time at:
To access the conference call by telephone from within Canada dial
toll free 1- (888) 241-0394. International callers or callers from
the Toronto area should use (647) 427-3413. Please connect
approximately 10 minutes prior to the beginning of the call and quote
the conference ID: 2208 8801.
The webcast will be available within 24 hours of the conference call
and will remain available at the link above for one year.
Forward Looking Information
Certain information included herein is forward-looking.
Forward-looking statements include, without limitation, statements
regarding the anticipated benefits of the Acquisition and additional
opportunities which may be available as a result of the Acquisition,
the ability of Parkland to leverage Elbow River Marketing's propane
supply options, the cross-selling opportunities which may result
through the Acquisition, Parkland's competitive position subsequent
to the Acquisition, the opportunities and synergies which may result
from the Acquisition, Parkland's future financial position and plans
and objectives of or involving Parkland. Many of these statements can
be identified by looking for words such as "believe", "expects",
"expected", "will", "intends", "projects", "projected",
"anticipates", "estimates", "continues", or similar words and
include, but are not limited to, statements regarding the accretive
effects of acquisitions and the anticipated benefits of acquisitions.
Parkland believes the expectations reflected in such forward-looking
statements are reasonable but no assurance can be given that these
expectations will prove to be correct and such forward-looking
statements should not be unduly relied upon. Forward-looking
statements are not guarantees of future performance and involve a
number of risks and uncertainties some of which are described in
Parkland's annual information form and other continuous disclosure
documents. Such forward-looking statements necessarily involve known
and unknown risks and uncertainties and other factors, which may
cause Parkland's actual performance and financial results in future
periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking
statements. Such factors include, but are not limited to: failure to
obtain necessary regulatory or other third party consents and
approvals; the failure to achieve the anticipated benefits of the
Acquisition; general economic, market and business conditions;
industry capacity; competitive action by other companies; refining
and marketing margins; the ability of suppliers to meet commitments;
actions by governmental authorities including increases in taxes;
changes in environmental and other regulations; and other factors,
many of which are beyond the control of Parkland. Any forward-looking
statements are made as of the date hereof and Parkland does not
undertake any obligation, except as required under applicable law, to
publicly update or revise such statements to reflect new information,
subsequent or otherwise.
About Parkland Fuel Corporation
Parkland Fuel Corporation is Canada's largest independent marketer
and distributor of fuel products, managing a nationwide network of
sales channels. We are Canada's local fuel company, delivering
gasoline, diesel fuel, propane, lubricants, heating oil and other
products to businesses, consumers and wholesale customers through
community based operators who care.
About Sparling's Propane
Sparling's Propane, Ontario's second largest propane retailer, has
been providing businesses and homes with propane and related products
and services for more than 60 years. Sparling's is committed to
bringing professional people, reliable supply and consistent pricing
to their customers every day. Sparling's dedicated propane service
team is the largest in Ontario. Their commitment to safety and
service is reflected in their in-house emergency response team and
Sparling's leading participation in GASCheck(R).
Parkland Fuel Corporation- Investor and Media Inquiries
Director of Corporate Communications
1-800-662-7177 ext. 2533
Parkland Fuel Corporation- Investor Information Services
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