Parkland Corporation, based in Calgary, Alberta, Canada, has entered into an agreement to acquire all the assets of Sevier Valley Oil Company, Inc. and its related companies (SVO), through its wholly owned U.S. subsidiaries.
Based in Richfield, Utah, SVO is a well-established retail and commercial fuel business with annual fuel and petroleum product volume of approximately 350 million litres. SVO’s primary operations are in Southwestern Utah along with a presence in Northern Utah and Colorado. The acquisition of SVO adds seven company retail locations and more than 20 retail dealers in addition to robust diesel and lubricant distribution capabilities.
“We continue to expand our U.S. footprint and execute on our growth strategy,” said Doug Haugh, president of Parkland USA. “This acquisition meaningfully expands our retail presence in rapidly growing Southern Utah and presents a fantastic opportunity to leverage our North American On the Run convenience store brand, enhance our customer proposition and drive incremental value.”
“The acquisition strongly complements our existing Rockies Regional Operating Center and positions us for further organic and acquisition growth in neighboring Nevada and Arizona,” Haugh said. “We are delighted to welcome Garrett Ekker and the SVO team to Parkland and look forward to the continued growth of our USA business.”
This acquisition is at valuation metrics consistent with Parkland’s prior U.S. transactions and will be funded out of existing credit facility capacity. SVO’s annual fuel and petroleum product volume of approximately 350 million litres is based on the trailing-12-month period ending July 2020 and contains a mix of retail, wholesale and commercial volume consistent with Parkland’s existing U.S.A. segment.
The transaction is subject to customary closing conditions and is expected to close in the fourth quarter of 2020.
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the United States, the Caribbean region and the Americas through three channels: retail, commercial and wholesale.