Market Overview

Canadian Fuel Distributor Parkland Grows US Footprint And Fleet With Kellerstrass Acquisition

Share:
Canadian Fuel Distributor Parkland Grows US Footprint And Fleet With Kellerstrass Acquisition

Parkland Fuel Corp. (TSX: PKI), a Canadian fuel distributor and seller, will acquire Kellerstrass Oil, growing its retail and commercial footprint and tanker fleet in the United States.

Alberta-based Parkland announced the deal to buy Salt Lake City's Kellerstrass on Thursday without disclosing terms. 

The acquisition will expand Parkland's presence in the Western U.S. with 84 dealer locations and add approximately 63 trucks to its fleet, based on U.S. Department of Transportation records.  

Parkland is purchasing Kellerstrass through its U.S. operation, Parkland USA. 

"We expect this acquisition will support the growth of our North America diesel platform, create supply efficiencies and deliver logistical benefits," Doug Haugh, president of Parkland USA, said in a statement. 

Kellerstrass builds on the November acquisition of Montana-based Mort Distributing.

Parkland said its U.S. operations will generate an estimated C$70 million in EBITDA with the addition of Kellerstrass. 

The company expects the deal to close during the first quarter.

Parkland operates retail, commercial and wholesale fuel businesses in Canada, the U.S. and the Caribbean. It also markets Chevron and Esso fuel products.

Image Sourced from Pixabay

 

Related Articles

View Comments and Join the Discussion!

Posted-In: acquisition CanadaM&A News Commodities Global Markets General