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Friday, April 26, 2024

Parkland puts 157 convenience store and fuel station locations up for sale

Source: BNN Bloomberg
By Amanda Stephenson, The Canadian Press

Fuel retailer Parkland Corp. has engaged two real estate firms to help it sell 157 of its gas and convenience store locations across six provinces.

The Calgary-based company said Tuesday it is partnering with NRC Realty & Capital Advisors LLC and Colliers Canada to find buyers for the locations, which include ones operated under the Chevron, Ultramar, Pioneer and FasGas brands as well as the On the Run convenience store banner.

The bulk of the stations are in Quebec and Ontario, with the balance in Alberta, British Columbia, Manitoba and Saskatchewan.

In an emailed statement, Francis Lapointe, Parkland's vice-president of Canadian retail operations, said the decision to sell the stations is part of the company's ongoing network planning and optimization process.

"As we continue to grow, we have identified sites that no longer fit our long-term strategic objectives in their current format," Lapointe said.

"While high-quality, these locations would be better suited under someone else's ownership."

Parkland said the retail and fuel locations will be packaged with long-term Parkland fuel supply agreements, which should make them attractive to "experienced, entrepreneurial operators."

Parkland has 4,000 retail and fuel locations in Canada, the U.S. and the Caribbean.

The company also owns and operates the Burnaby, B.C. refinery, which provides about a quarter of the gasoline and diesel used in the western province.

The gas and convenience store sale process comes as Parkland faces calls from New York-based activist investor Engine Capital LP for a complete board overhaul at the company.

In addition, Parkland saw the resignation of two board members who represented its largest shareholder, Simpson Oil at the end of last year.

Simpson has said it will evaluate its options to protect its shareholder rights once restrictions under an agreement that limits its ability to nominate and vote for board members at Parkland expire on March 31.

Parkland's annual general meeting is set to take place in Calgary on Thursday.