Parkland USA Adds Another Deal to Its Acquisition Spree
The transaction with Lynch Oil will complement Parkland's Pacific Northwest growth platform.
CALGARY, Alberta — Parkland Corp. is expanding its reach across the Pacific Northwest in the latest deal of its acquisition spree.
Parkland USA, comprised of wholly owned subsidiaries of the Canadian-based company, entered into an agreement to acquire substantially all of the assets of Lynch Oil and certain its affiliates. Lynch Oil — whose operations are concentrated in southern and central Idaho — includes five large-format convenience stores and forecourts, two travel centers, two stand-alone car washes, and a rail storage terminal, and will add annual fuel sales of more than 180 million liters.
Gross profit from the acquired assets is split roughly 60 percent retail, convenience, carwash and non-fuel, and 40 percent commercial and wholesale, according to Parkland.
"This acquisition advances our strategy by strengthening our retail convenience network and supply advantage in a growing market where we already have a significant presence," said Doug Haugh, president of Parkland USA. "We are excited to welcome the Lynch team to Parkland and look forward to growing our customer base and providing them with the quality products and exceptional service they expect."
The transaction is expected to close in the fourth quarter of 2021.
The deal for Lynch Oil strengthens Parkland's growth platform across the Pacific Northwest and complements its existing retail, commercial and wholesale businesses in Idaho. The operator established a fourth U.S. Regional Operating Center (ROC) in Idaho Falls, Idaho, in its acquisition of Conrad & Bischoff Inc. (C&B) earlier this year. C&B's operations are concentrated in the fast-growing markets of Idaho and western Wyoming with additional distribution capability into Utah, Nevada, Montana and other states.
The deal for Lynch Oil marks Parkland's third acquisition this month. On Nov. 1, the company inked an agreement to purchase Parker's Energy division, a wholesale fuel marketer with supply business throughout the southeastern United States.
Then, Parkland will nearly double its U.S. retail business after picking up Urbieta Oil Co. The deal includes 94 locations, including the real estate purchase of 54 strategic sites. It also complements Parkland's existing Florida commercial business by establishing a large retail and convenience growth platform with high-quality real estate in Miami, the company stated.
Canada-based Parkland is a leading convenience store operator and independent supplier and marketer of fuel and petroleum products. It services customers across Canada, the United States, the Caribbean region and the Americas.