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By W.B. King
RED DEER, Alberta -- NOCO Energy Canada Inc. sold its fuel supply and marketing business for $8.5 million to Parkland Income Fund. The deal includes approximately 56 independently owned and operated Esso, Sunoco and Noco branded locations and 69 wholesale accounts outside the Greater Toronto area.
Parkland President and CEO Mike Chorlton told CSNews Online, "We were working on this [acquisition] for a couple of months, and since it's similar to the business we do, we didn't take long to assess and come to terms on it."
Parkland Income Fund currently operates retail and wholesale fuels and convenience store businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels and Short Stop Food Stores brands and through independent branded dealers, and transports fuel and other products through its distribution division. With approximately 530 locations, Parkland has developed a strong market niche in western and northern Canadian non-urban markets.
Chorlton explained that the acquisition will allow the company to expand into the Ontario market while building on the success of its branded distribution relationship with Imperial Oil. "It's an important strategic step as it expands our geographic foot print and is an expansion of our non-urban focus," he told CSNews Online.
Building on the existing multi-brand identify, the deal will also introduce Sunoco and Esso to Parkland's platform. "We are happy to add our relationship with Sunoco and Esso to our portfolio of brands and suppliers," said Chorlton.