Parkland Fuel enters U.S., buys distribution business for $110M
Alberta-based independent fuel supplier acquiring North Dakota's SPF Energy Inc.
RED DEER, Alta.—An Alberta-based independent fuel supplier says it is expanding into the United States after buying fuel distribution business in North Dakota for approximately $110-million.
According to Parkland Fuel Corp., it has entered an agreement to acquire SPF Energy Inc. for about $89-million cash and approximately $21-million in common shares of Parkland.
SPF is the parent company of Farstad Oil Inc. and Superpumper Inc. and supplies and distributes approximately 1.1 billion litres of refined petroleum products annually.
It services more than 200 independent gas stations in North Dakota, Montana, Minnesota, South Dakota and Wyoming.
SPF also has rail trans-loading facilities and 40,000 barrels of bulk storage in Minot, N.D.
Parkland is a retail branded distributor for Imperial Oil under the Esso brand in western Canada and Ontario, as well as the Fas Gas and Race Trac brands.
The acquisition is expected to close Jan. 1, 2014, subject to regulatory approvals.