Parkland looking to sell its Florida retail operations
The company’s network in the state encompasses 100 retail locations, nine cardlock facilities, and four bulk storage plants and warehouses.
Parkland Corporation announced that it is initiating a process to divest its Florida-based retail and commercial businesses.
Consistent with its strategy laid out in November 2023, the company expects to double cash flow per share to $8.50 and grow adjusted EBITDA to $2.5 billion by 2028 through continued organic growth. Thus, this would result in lowering costs and optimizing its supply advantage.
"This disposition reflects our commitment to direct capital towards our highest return opportunities and maximize shareholder value. We remain deeply committed to our northern US business, which is performing well and has strong connectivity with Canada," said Bob Espey, President and CEO, Parkland.
The firm continuously reviews all parts of its portfolio. While its Florida improvement plan is on track, it has more accretive investment opportunities in other parts of its business that can deliver stronger financial returns and growth.
Parkland remains focused on improving returns and increasing cash flow through disciplined capital allocation. By divesting non-core assets, the company continues to focus on areas with the highest growth potential and strongest synergies with its core business.
Its Florida business comprises approximately 100 retail locations, nine cardlock facilities and four bulk storage plants and warehouses. The company expects to complete this disposition within the next 12 to 18 months.
The announced sale of Parkland's Florida business is part of the Company's previously announced non-core asset divestment program which the Company now expects will significantly exceed $500 million by the end of 2025.
