Parkland Corporation is pleased to announce it has entered into an agreement to acquire Pétroles Crevier Inc. , which is a well-established retail and wholesale business based in Montreal, Canada. This is Parkland’s eighth acquisition announced year-to-date, each of which supports our growth strategy and moves us toward our ambition for $2 billion of run-rate Adjusted EBITDA by the end of 2025.
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“This acquisition extends our existing retail network in Quebec and expands our presence in key markets,” said Donna Sanker, President of Parkland Canada. “We believe we can add significant value by deploying our proven retail capabilities, proprietary Marche Express (ON the RUN) convenience and Ultramar forecourt brands, and JOURNIE™ Rewards loyalty program. We look forward to continuing to provide Crevier’s customers with essential products and exceptional service.”
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Crevier’s operations extend across Quebec, serving customers through a portfolio of 36 company-owned retail locations and 138 retail dealer locations. In addition, Crevier’s large wholesale business and significant unbranded volume enhance our supply advantage and import optionality. This transaction is expected to add annual fuel and petroleum product volume of approximately 700 million litres, of which 70 percent is attributable to wholesale, and annual run-rate Adjusted EBITDA of approximately C$12 million, prior to additional growth and synergy upside.
75 percent of the transaction consideration will be funded out of existing credit facility capacity, and the remaining 25 percent with Parkland common shares issued from treasury. The transaction is expected to close in the first quarter of 2022 and is subject to approval under the Competition Act (Canada) and other customary closing conditions.
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