Parkland Fuel Corporation (TSX:PKI), an independent marketers of fuel and petroleum products, has completed the acquisition of Chevron Canada R & M ULC from Chevron Corporation (NYSE: CVX) for $1,460 million, plus an estimated $186 million in working capital adjustment.
Chevron Canada R&M operates Chevron’s Canadian integrated downstream fuel business. The acquired business consists of: 1) 129 Chevron-branded retail service stations principally located in Metro Vancouver, which complement Parkland’s existing 44 Chevron-branded sites in British Columbia, 2) 37 commercial cardlock and three marine fueling locations, 3) a complimentary refinery in Burnaby, terminals located in Burnaby, Hatch Point, and Port Hardy, British Columbia, and a wholesale business which includes aviation fuel sales to the Vancouver International Airport.
“This acquisition provides Parkland with British Columbia’s strongest fuel marketing business and will make Parkland the exclusive distributor of Chevron-branded fuels. With this acquisition, Parkland is also acquiring the Burnaby Refinery, a proven asset that directly supports our core fuel marketing business in an important region, and enhances our supply advantage,” said Bob Espey, President and Chief Executive Officer of Parkland. “We are extremely pleased to welcome the Chevron Canada refining and marketing employees to the Parkland team. We believe in and are committed to investing in these assets, and the local employees who will help us grow in BC and beyond.”