Parkland Income Fund agreed to acquire the fuel distribution business of Columbia Fuels Ltd., which also delivers lubricants to commercial customers, for Canadian $34.5 million (U.S. $30.5 million).
The acquisition was expected to close yesterday, with an effective date of June 1.
Headquartered in Victoria, British Columbia, Columbia Fuels distributes home heating oil, bulk petroleum and bio fuels, and operates bulk fuel terminals on Vancouver Island and the Sunshine Coast Region of B.C. The Canadian distributor said it offers Shell lubricants at seven lube office locations, delivering the lubricants to commercial customers throughout Vancouver Island, Powell River and the Sunshine Coast.
Parkland President and CEO Mike Chorlton said the proposed acquisition of Columbia is expected to provide a strong operating platform on Vancouver Island, including a strong customer base and storage and delivery capability.
Red Deer, Alberta-based Parkland Income Fund supplies lubricants, propane, bulk fuel, heating oil, industrial fluids, agricultural inputs and associated services to commercial and industrial customers in Alberta, British Columbia, and the Yukon Territory under the Neufeld, United Petroleum and Great Northern Oil brands. It also operates the Bowden refinery near Red Deer as a storage and contract-processing site.