Parkland expands network with acquisition of Husky locations
The acquisition includes 109 company owned sites and 47 dealer locations in Canada.
Parkland has acquired 156 retail locations from Cenovus Energy Inc. This acquisition bolsters Parkland's existing Canadian convenience retail network by adding Husky-branded stations in Greater Vancouver, Vancouver Island, Calgary, and the Greater Toronto area.
"Consistent with our recently announced strategy to develop our retail network in key Canadian markets and diversify our retail business to better serve our customers, it provides an opportunity to create convenience destinations by expanding our ON the RUN convenience brand, enhancing food offerings, and strengthening the Parkland national network for JOURNIE Rewards,” said Donna Sanker, President Parkland Canada.
The acquisition includes 109 company owned sites and 47 dealer locations and is expected to add annual fuel volumes of approximately 400 million litres to our network.
"We will convert a significant number of the company owned sites to ON the RUN and accelerate our plan to build a network of over 1,000 ON the RUN locations in Canada and the U.S. by 2025,” added Sanker.
The total cash consideration for this transaction is approximately $156 million and reflects a post-synergy multiple consistent with certain prior transactions of approximately 5 times.
