RED DEER, ALBERTA -- (Marketwired) -- 04/02/13 -- Parkland Fuel Corporation ("Parkland" or the "Corporation") (TSX: PKI), Canada's largest independent distributor and marketer of fuel products, today announced that it has entered into agreements (the "Arrangement") to be Morgan Stanley's fuel marketer in the province of Quebec; to assume the customers and assets of TransMontaigne Marketing Canada Inc. ("TMCI"); and to lease terminal storage through CanTerm Canadian Terminals Inc. in both Montreal and Quebec City. The Arrangement is expected to close on May 2, 2013.
-- Acquisition of TMCI business through supply agreement and assumption of accounts receivable;-- More than 500 million litres of low margin wholesale fuel volumes annually in Quebec and Ontario; and-- A new supply platform to support growth in Quebec.
-- Accomplishes Parkland's objective to establish access to fuel terminal storage in Eastern Canada;-- Adds a new supply partner through Morgan Stanley to further enhance Parkland's supply options in Ontario and Quebec; and-- Adds to Parkland's strategic supply infrastructure portfolio.
-- Ontario business to be immediately integrated into Parkland's operating platform; and-- Quebec office to remain intact under the operating name Les Petroles Parkland.
TransMontaigne Marketing Canada Inc. is a leading wholesale marketer of fuel products in Ontario and Quebec selling conventional gasoline, E10 ethanol gasoline, ultra-low sulfur diesel, biodiesel blends, heating oil, and heavy fuel oil. TMCI has established a track record of being a reliable supplier of quality petroleum products through a focus on safety, efficiency, flexibility and customer service.
"Adding Morgan Stanley to our national supply portfolio, coupled with access to fuel terminal storage, provides an excellent platform for us to grow and acquire volume in Quebec," said Bob Espey, President and Chief Executive Officer of Parkland. "While only modestly profitable at this time, this is a strategic acquisition with significant growth potential."
The Arrangement is subject to the receipt of all necessary third party and regulatory approvals including approval under the Competition Act.
2013 Penny Plan Update
On April 15, 2013 Parkland will host an investor event in Toronto for analysts and institutional investors that will review this transaction in the context of Parkland's five year growth strategy. The event will start at 9:00 a.m. Eastern Time (7:00 a.m. Mountain Time).
Interested analysts and institutional investors who have not received an invitation should contact Parkland Fuel Corporation investor relations at the information below. The registration deadline is April 8, 2013.
Investors interested in viewing the webcast of this event are advised to log into the webcast slide presentation 10 minutes before the start time at: