Parkland buys 75% stake in SOL Investments Ltd
Parkland Fuel Corp said it would buy a 75 per cent stake in privately held SOL Investments Ltd and its units for $1.57 billion.
The deal gives the Canadian-based marketer of petroleum products access to 526 retail gas stations, expanding its presence in the U.S. Gulf and Atlantic coasts, the company told Reuters.
Upon closing of the deal, SOL’s parent company Simpson Group will own a stake of about 10 per cent in Parkland, the companies said in a statement.
Parkland will also get a call option for purchase of the remaining 25 per cent stake in the company.
The transaction will be financed by Parkland through debt financing of around $1.1 billion underwritten by Canadian Imperial Bank of Commerce and National Bank of Canada.
Last year, Parkland signed a deal to buy Chevron Corp’s gasoline stations and refinery in British Columbia for $1.46 billion.
Parkland said it will retain the SOL operating brand and key management and SOL will continue to be managed from the Caribbean.