Parkland Corp. has issued a statement urging its shareholders to support its recently-announced transaction with Sunoco, through which the Canadian c-store giant would be acquired by Sunoco for $9.1 billion.
Announced at the beginning of May, the deal is set to create one of the largest independent fuel distributors in the Americas. Ahead of its upcoming shareholder meeting, Parkland’s board is suggesting that shareholders vote in favor of a special resolution that would allow the acquisition to go through.
“This transformative transaction marks a pivotal moment for Parkland, delivering immediate value to company Shareholders while positioning the combined company for long-term growth,” Parkland noted in a statement.
As part of the deal, Sunoco will maintain a Canadian headquarters in Calgary, in addition to “significant employment levels in Canada,” the statement read.
“The transaction leverages the complementary strengths of both companies to create a more diversified portfolio spanning Canada, the U.S., and the Caribbean, reducing single-industry exposure while improving earnings resiliency and minimizing volatility,” it continued.
The combined company is expected to achieve $250 million in annual run-in synergies by the third year.
The news comes following Parkland’s previously-announced strategic review, launched in March, which was designed to “identify opportunities to maximize value for shareholders,” which included considering a potential sale, the company noted at the time.
In the midst of its strategic review, Parkland was also dealing with dissension from its leading shareholder, Simpson Oil, which called for, and was ultimately granted, the removal of CEO Bob Espey. Simpson also nominated nine independent directors to the board in an attempt to reconfigure the leadership of the company.
Additionally, in September 2024, Parkland announced the divestment of its Florida business, which included the sale of 100 c-stores.
“This transaction delivers immediate value for shareholders, including an attractive 25% premium,” said Espey at the time of the announcement. “Sunoco shares our commitment to growth, customer service, operational excellence and ongoing investment in Canada, making our combined business stronger and better positioned for sustained success.”
Parkland will hold its special meeting of shareholders on June 24.
