Sunoco completes $9.1B acquisition of Parkland
Sunoco LP recently closed on the acquisition of Parkland Corporation in a transaction valued at $9.1 billion that makes Sunoco one of the largest fuel distributors in North America.
The deal includes the delisting of Calgary, Alberta, Canada-based Parkland’s shares from the Toronto Stock Exchange on Nov. 4. The SunocoCorp common units Parkland shareholders receive in connection with the transaction were expected to begin trading on the New York Stock Exchange under the ticker symbol “SUNC” on Nov. 6, following the settlement of the Parkland shares and completion of the allocation process for the SunocoCorp common units, the companies reported.
“It’s official. Sunoco LP is North America’s largest independent fuel distributor after its acquisition of Parkland Corporation,” John G., Sunoco business development manager for the West Coast, said in a LinkedIn post. “This expansion will significantly increase its market presence across the U.S., Canada, and the Caribbean. The combined company will become the largest independent fuel distributor in the Americas. What a great milestone and organization to be a part of.”
SunocoCorp now holds a 27% limited-partner interest in Sunoco LP’s outstanding common units, the company reported. The midstream partnership with an Energy Transfer subsidiary includes a network of approximately 14,000 miles of pipeline and over 160 terminals. This infrastructure complements their fuel distribution operations, which deliver over 15 billion gallons to about 11,000 Sunoco and partner-branded retail locations, and independent dealers and commercial customers, annually.
Prior to joining Sunoco, Parkland reported operating in 26 countries across the Americas a leading international fuel distributor, marketer, and convenience retailer. Parkland supplies fuel to consumers at many retail gas stations, including brands like Esso, Ultramar, Chevron, Pioneer, and Fas Gas. It also supplies commercial fuel, heating oil, and lubricants to businesses.
“This strategic combination is a compelling outcome for Parkland shareholders,” Michael Jennings, Parkland executive chairman, said in May when the agreement was first announced. “The board unanimously recommends the proposed transaction, recognizing Sunoco’s commitment to safeguarding Canadian jobs, retaining the Calgary head office, and further investing in Canada.
“This partnership creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas.”