Parkland Fuel Corp. has reached an agreement to acquire British Columbia retail outlets, commercial terminals and a refinery from Chevron for approximately $1.5 billion.
The Alberta-based company has been expanding steadily, and with this acquisition will be the exclusive distributor of Chevron-branded fuels in the B.C. marketplace. The deal includes 129 Chevron service stations, primarily in the Metro Vancouver region, which complement the Parkland's existing 44 Chevron-branded sites in B.C. It also includes 37 commercial cardlock and three marine fueling locations, a wholesale business that includes aviation fuel sales to Vancouver International Airport, and the Chevron refinery in Burnaby with its 55,000 barrels per day capacity.
All told, the deal will add some 2.5 billion litres of annual volume to Parkland's sales.
"This accretive acquisition further strengthens our supply-focused business model and adds significant scale with the premier Chevron retail brand and network in British Columbia." said Bob Espey, President and Chief Executive Officer of Parkland. “Parkland is acquiring a highly integrated business which adds significant supply infrastructure and logistics capability to support Parkland’s existing operations. The refinery in Burnaby is an important asset to Metro Vancouver and British Columbia and we will continue to operate it with the capable and experienced professionals who manage the refinery today. We look forward to welcoming the Chevron team to our company, and to deepening our relationships in British Columbia."