The acquisition, set to close around Oct. 1, to help Parkland grow across North Dakota.
Canada-based Parkland Fuel Corp., through its U.S. based subsidiaries is acquiring all of the issued and outstanding equity interests of Missouri Valley Petroleum Inc. and its affiliates (MVP), a petroleum products distributor with operations throughout North Dakota along with real estate assets used in the operation of the business.
Parkland is Canada’s largest and one of North America’s fastest growing independent marketers of fuel and petroleum products, as well as a convenience store operator.
MVP is a retail, wholesale and lubricants business with headquarters in Mandan, N.D. MVP operates three bulk plant terminals co-located with cardlocks in Williston, Belfield and Mandan, and owns and operates six retail sites with convenience stores located in Mandan, Rugby and Bismarck. MVP also supplies 19 branded dealers across North Dakota and distributes approximately 84 million gallons (318 million litres) of fuel and petroleum products annually.
“The MVP acquisition is a tuck-in acquisition for Parkland USA that brings a great asset base and team, which will accelerate the growth of our North Dakota business. We are excited to welcome the MVP employees to the Parkland team,” said Bob Espey, president and CEO of Parkland.
“The MVP acquisition represents an opportunity for Parkland USA to grow within our existing footprint in North Dakota and expand our offering into the commercial fuel market. These business lines provide us with a strong organic growth opportunity that we do not address today through our existing retail and wholesale fuel operations in North Dakota.” said Doug Haugh, president of Parkland USA.
The acquisition is expected to close on or about Oct. 1, 2018 and is expected to be funded with cash flows and capacity under Parkland’s existing credit facility. The acquisition is subject to customary closing conditions.