RED DEER, Alta.—Parkland Fuel Corporation, a fuel distributor and marketer, is selling its Petrohaul and Wiebe long-haul transportation businesses to Seaboard Liquid Carriers Ltd. for $23.5 million.
Seaboard is a Canadian bulk liquid carrier specializing in the transportation of petroleum products.
Parkland has also entered into a multi-year service agreement with Seaboard for distribution services in the markets previously served by Petrohaul and Wiebe, which currently account for less than one third of Parkland’s long-haul transportation in Canada.
The deal is subject to closing conditions.
“We identified the need to divest the long-haul transportation division to a strategic partner,” said Bob Espey, Parkland’s President and Chief Executive Officer.
“The divestiture, combined with a multi-year service agreement with Seaboard, will allow us to invest more capital in our core business of fuel marketing,” he added.
The divestment of Petrohaul and Wiebe Transportation includes a number of tractors, tanks, trailers and light trucks, as well as several properties in Northern Alberta.