- The US subsidiaries of fuel provider Parkland (PKI) have agreed to acquire all assets of Sevier Valley Oil Company (SVO)
- SVO is a retail and commercial fuel business, with annual fuel and petroleum product volume of approximately 350 million litres
- Parkland’s acquisition of SVO will significantly add to the company’s growing retail presence in the United States
- The company will fund the acquisition through the capacity of an existing credit facility
- Parkland is up 3.82 per cent and is currently trading for $41.32 per share
The US subsidiaries of fuel provider Parkland (PKI) have agreed to acquire all assets of Sevier Valley Oil Company (SVO).
SVO is a retail and commercial fuel business, based in Richfield, Utah. Its primary operations are in south-western Utah, accompanied by some presence in northern Utah and Colorado.
SVO currently has an annual fuel and petroleum product volume of approximately 350 million litres.
The acquisition of SVO will add seven retail locations, over 20 retail dealers, and robust diesel and lubricant distribution capabilities to Parkland. Specifically, the acquisition will significantly add to the company’s growing retail presence in the United States.
President of Parkland’s US branch, Doug Haugh, said the company is continuing to expand its US footprint and execute its growth strategy.
“This acquisition meaningfully expands our retail presence in rapidly growing Southern Utah and presents a fantastic opportunity to leverage our North American On the Run convenience store brand, enhance our customer proposition, and drive incremental value,” he said.
“The acquisition strongly complements our existing Rockies Regional Operating Centre and positions us for further organic and acquisition growth in neighbouring Nevada and Arizona,” he added.
Doug went on to welcome Garrett Ekker and the SVO team to the company, which is looking forward to the continued growth of its US business.
Parkland has not yet divulged how much the acquisition of SVO will cost. However, the company did state that the acquisition will be funded from the capacity of an existing credit facility.
Subject to customary closing conditions, the transaction should close in 2020’s fourth quarter.
Parkland is up 3.82 per cent and is trading for $41.32 per share, as of 11:13am EST.
