- Parkland Corp. (TSX:PKI) intends to sell its Florida-based retail and commercial businesses as part of its more than C$500 million non-core asset divestment program
- The company’s assets in the Sunshine State include approximately 100 retail locations, nine cardlock facilities and four bulk-storage plants and warehouses
- Parkland is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas
- Parkland Corp. stock has given back 2.78 per cent year-over-year and 18.29 per cent since 2019
Parkland Corp. (TSX:PKI) intends to sell its Florida-based retail and commercial businesses as part of its over C$500 million non-core asset divestment program.
Parkland’s assets in the Sunshine State include approximately 100 retail locations, nine cardlock facilities and four bulk-storage plants and warehouses, each of which are receiving “substantial interest,” according to Tuesday’s news release, with any capital raised to be allocated to “more accretive investment opportunities in other parts of its business that can deliver stronger financial returns and growth.”
Management is confident in completing the divestiture in 12 to 18 months, furthering its goal of doubling cash flow per share to C$8.50 and growing adjusted EBITDA to C$2.5 billion by 2028, as per a five-year plan laid out in November 2023.
Parkland expects to close the previously announced sale of its Canadian propane business in Q4 2024, gaining C$115 million in cash and an exclusive long-term supply contract with the acquirer.
The transactions follow the April 2024 request by Simpson Oil, a 20 per cent shareholder, for the company to initiate a strategic review and potential change of leadership to optimize shareholder value. Parkland deemed the review unnecessary in a statement released a few days later, but has since acquiesced to a number of Simpson’s demands, including board member renewals and the transition of its chairman.
Leadership insights
“This disposition reflects our commitment to direct capital towards our highest-return opportunities and maximize shareholder value,” Bob Espey, Parkland Corp.’s president and chief executive officer, said in a statement. “We remain deeply committed to our northern U.S. business, which is performing well and has strong connectivity with Canada.”
About Parkland Corp.
Parkland is an international fuel distributor, marketer and convenience retailer with operations in 26 countries across the Americas.
Parkland Corp. stock (TSX:PKI) is down by 2.11 per cent, trading at C$35.70 per share as of 10:40 am ET. The stock has given back 2.78 per cent year-over-year and 18.29 per cent since 2019.
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(Top photo: Parkland Corp.)