Alberta-based Parkland Fuel Corp. is buying 75 per cent of SOL, the largest independent fuel marketer in the Caribbean, in a deal worth about $1.57 billion.
Parkland is Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products and a leading convenience store operator. SOL, a privately-held company owned by the Simpson Group, is the largest independent fuel marketer in the Caribbean and a wholly-owned subsidiary of SOL Ltd.
In a news release, Parkland said SOL supplies and markets a total of 4.8 billion litres of fuel volume annually across 23 countries in the Caribbean and generated about $280 million in adjusted earnings before taxes, depreciation and amortization in the 12-month period ending June 2018.
“The addition of SOL will extend our global supply reach and enable us to continue to build our supply advantage to benefit our entire business,” said Parkland president and CEO Bob Espey.
“With its integrated supply chain backed by an extensive distribution network, fortress assets, a premier brand portfolio and an exceptional team, SOL has built a strong market position with unparalleled regional scale. Together, Parkland and SOL create a significant North American and Caribbean growth platform. We are delighted to partner with the Simpson Group and welcome the opportunity to work with SOL’s strong management team to optimize and grow SOL’s industry leading retail and supply network through our combined scale and expertise.”
Sir Kyffin Simpson, founder of SOL Ltd., said the combination of Parkland and SOL “will ensure an exciting and dynamic future for everyone.”
“With a desire to continue to develop and grow the business through expansion in new areas, I am extremely blessed to bring in our good friends Parkland of Canada to the Caribbean,” he added. “I have long admired Parkland as a company with their futuristic vision and energy, and I have been tremendously impressed with Bob Espey’s strong leadership along with his exceptional management team.
“I am truly confident that this coming together with the fantastic team at SOL will be a complementary blend of cultures, ideas, technology and innovation. I am convinced that Parkland and SOL are perfectly matched to develop new and exciting opportunities, with renewed energy that will provide excellent avenues for the development of our people that will in turn enhance our customer experience and open new doors for great synergies and improved logistics. With forty-three million people and a GDP of more than US$200 billion, this is the perfect time to take advantage of the tremendous opportunities that abound in the Caribbean.”
Mario Toneguzzi is a veteran Calgary-based journalist who worked for 35 years for the Calgary Herald, including 12 years as a senior business writer.
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