Parkland Fuel Corp, a Canada-based marketer of petroleum products, said on Wednesday it would buy a 75 per cent stake in privately held SOL Investments Ltd and its units for CAN$1.57 billion (US$1.21 billion).
The deal gives Parkland access to 526 retail gas stations, expanding its presence in the US Gulf and Atlantic coasts, the company said.
Upon closing of the deal, SOL’s parent company Simpson Group will own a stake of about ten per cent in Parkland, the companies said in a statement.
Parkland will also get a call option for purchase of the remaining 25 per cent stake in the company.
The transaction will be financed by Parkland through debt financing of around CAN$1.1 billion underwritten by Canadian Imperial Bank of Commerce and National Bank of Canada.
Last year, Parkland signed a deal to buy Chevron Corp’s gasoline stations and refinery in British Columbia for CAN$1.46 billion.
Parkland said it will retain the SOL operating brand and key management and SOL will continue to be managed from the Caribbean. (Reuters)