Sunoco LP, Dallas, Tex., has agreed to acquire Parkland Corp. in a cash and equity deal valued at about $9.1 billion, including assumed debt. The deal would create the largest independent fuel distributor in the Americas with over 15 billion gal/year distributed, the companies said in a shared investor presentation May 5.
In a May 5 press release, the companies pointed to the complementary asset base that "enables advantaged fuel supply and further diversifies Sunoco's portfolio and geographic footprint."
Sunoco plans to maintain a Canadian headquarters in Calgary and "significant" employment levels in Canada. The company also is also "committed to continuing to invest in Parkland’s [Burnaby] refinery, which produces low-carbon fuels, while maintaining safe, healthy and growing operations for the long-term," it said, noting the refinery will continue to operate and supply fuel within the Lower Mainland.
According to Parkland, 55,000-b/d refinery on Burrard Inlet in North Burnaby, near North Vancouver, BC, provides 25% of British Columbia's transportation fuel (gasoline and diesel).
In its release, Sunoco also said it will continue to "support Parkland's plan to expand its Canadian transportation energy infrastructure."
Sunoco has secured a $2.65 billion 364-day bridge term loan for the proposed cash consideration.
The deal has been unanimously approved by the board of directors of both companies and is expected to close in this year’s second half upon the satisfaction of closing conditions, including approval by Parkland's shareholders and customary regulatory and stock exchange listing approvals.
Sunoco is an energy infrastructure and fuel distribution master limited partnership operating in over 40 US states, Puerto Rico, Europe, and Mexico. Its midstream operations include a network of about 14,000 miles of pipeline and over 100 terminals. Sunoco’s general partner is owned by Energy Transfer LP.
Parkland is an international fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas.
