USA: Parkland in negotiations to buy majority of Urbieta Oil Co.
The transaction includes 94 retail locations and 54 strategic sites to boost the buyer’s operations in the Florida region.
Parkland Corporations has entered into an agreement to acquire most of Urbieta Oil Co. assets and certain affiliates. This would expand the company’s presence in Florida by complementing its commercial business with a large retail and convenience growth platform in Miami.
“Adding the Urbieta stores nearly doubles our U.S. retail business, provides immediate scale in a resilient, fast-growing market, and creates opportunity to meet customers’ needs through our ON the RUN convenience brand,” commented Doug Haugh, President of Parkland USA.
Urbieta is a family firm founded in 1974 that has established a solid retail, convenience and fuel distribution business. In 2020 the company registered approximately 465 million litres of fuel in annual sales, mostly concentrated in the Miami market. The negotiations with Parkland include 94 retail locations and the real estate purchase of 54 strategic sites.
“In addition to adding an exceptional team, this acquisition provides a springboard for growth in the Southern Florida market with close proximity to our Caribbean business. The fragmented U.S. market presents a long runway of consolidation opportunities for Parkland to build scale, and better serve our customers. We will remain disciplined in our appraisal of the opportunities we see in front of us,” added Haugh.
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2021. Gross profit from the acquired assets is split approximately 85% retail and 15% commercial and wholesale operations. Existing credit facility capacity will fund 90% of the transaction consideration while the remaining 10% will be funded by Parkland’s common shares issued from treasury.
