Canada-based Parkland Corp., through its wholly owned U.S. subsidiaries (Parkland USA), will acquire Conrad & Bischoff Inc. (C&B) and its related companies. Through this acquisition, Parkland will establish a fourth U.S. Regional Operating Center in Idaho Falls, Idaho.
C&B is a well-established retail, commercial, wholesale and lubricants business with annual fuel and petroleum product volume of approximately 700 million liters. Family owned and operated since 1959, C&B’s operations are concentrated in the fast-growing markets of Idaho and western Wyoming with additional distribution capability into Utah, Nevada, Montana and other states.
“This acquisition checks all the boxes of our U.S. growth strategy and complements our existing ROCs,” said Parkland USA President Doug Haugh. “C&B strengthens our supply advantage, brings a high-quality retail network and offers a long runway for organic growth.”
The transaction includes 58 retail locations, comprising 19 high-quality company-owned sites featuring proprietary branded backcourts and 39 retail dealer sites. In addition, terminal operations with combined tank storage of 30 million liters and capacity for 88 rail cars adds significant supply optionality in PADD IV.
“In addition to adding an exceptional team, C&B creates a springboard for growth throughout the Pacific Northwest,” added Haugh. “We continue to profitably grow our U.S. business and will remain disciplined in our appraisal of the many opportunities we see in front of us.”
The transaction will be completed at valuation metrics consistent with recent acquisitions which established new ROCs in the U.S. Gross profit from the acquired assets is split approximately 55% retail operations and 45% wholesale and commercial operations. The acquisition will be funded out of existing credit facility capacity, is subject to customary closing conditions and is expected to close in the second quarter of 2021.
Parkland will discuss the transaction as part of its previously disclosed 2020 fourth quarter and year-end results conference call, scheduled for March 5, 2021, at 8:30 a.m. EST.
Parkland is an independent supplier and marketer of fuel and petroleum products and a leading convenience store operator. Parkland services customers across Canada, the U.S., the Caribbean region and the Americas through three channels: retail, commercial and wholesale. Parkland optimizes its fuel supply across these three channels by operating and leveraging a growing portfolio of supply relationships and storage infrastructure. Parkland provides trusted and locally relevant fuel brands and convenience store offerings in the communities it serves.