Parkland Fuel Corporation, Canada’s largest and one of North America’s fastest growing independent marketers of fuels, lubricants and other petroleum products and a leading convenience store operator, announced the acquisition of Rhinehart Oil Co., Inc. and its affiliates t through its U.S. based subsidiaries.
Rhinehart Oil Co. is a retail, commercial and lubricants business with operations in the U.S. states of Utah, Colorado, Wyoming and New Mexico. Headquartered in American Fork, Utah, Rhinehart Oil Co. transports, distributes and markets a full range of fuels, lubricants and chemical products, in addition to providing equipment and one-stop shop servicing to its customers in the region.
Rhinehart Oil Co. operates and supplies four cardlock facilities, nine retail sites and markets and distributes fuels, lubricants and specialties through 10 distribution facilities. Rhinehart Oil Co. distributes approximately 72 million gallons of fuels and lubricants per year.
“The Rhinehart acquisition represents a significant expansion for Parkland,” said Bob Espey, president and chief executive officer of Parkland Fuel Corporation. “Rhinehart has an excellent business and asset base that will serve as a platform for growth in Utah, Colorado and neighboring states. We are excited to welcome Dave and John Jardine from the Rhinehart leadership team and the rest of the Rhinehart employees to the Parkland team.”
“Rhinehart is a prominent fuel distributor and a well scaled and respected ExxonMobil lubricants distributor,” said Doug Haugh, president of Parkland USA. “The addition of Rhinehart to the Parkland USA team provides us with the talented staff and scalable infrastructure we need to establish our Regional Operations Center (ROC) for the Rocky Mountain tributary. This ROC will be the operating platform that drives organic growth and enables further acquisitions across the region that can leverage substantial existing capacity within their current rail hubs, bulk storage terminals, and warehouses.”
The acquisition is expected to close on or about August 27, 2018 and is expected to be funded with cash flows and capacity under Parkland’s existing credit facility. The acquisition is subject to customary closing conditions.