Parkland Fuel Corp. continues to grow.
The Red Deer-based company (TSX: PKI) announced on Thursday that it’s buying Elbow River Marketing LP from AvenEx Energy Corp. for approximately $90 million. The deal is expected to close on or about Feb. 15.
Elbow River markets, supplies and transports petroleum products in North America.
It has annual sales volumes of approximately two billion litres and manages a fleet of 1,200 rail cars, which Parkland said will provide supply and throughput opportunities for its Bowden terminal.
The company said it will pay $80 million in cash for Elbow River’s assets and also assume between $10 million and $15 million in debt. It added that Elbow River will operate as a stand-alone subsidiary.
“The acquisition of Elbow River Marketing extends Parkland’s marketing capability within the petroleum marketing sector, diversifies our earnings and further differentiates Parkland from other Canadian fuel marketers,” said Bob Espey, Parkland’s president and CEO.
Parkland is Canada’s largest independent distributor and marketer of petroleum products.