Dec 5, 2013 - By Dirk Lammers, The Associated PressA Canadian fuel supplier and reseller plans to enter the U.S. market with a $110 million purchase of a North Dakota fuel distribution business.
Parkland Fuel Corporation, which is based in Red Deer, Alberta, said it is buying all outstanding shares of SPF Energy Inc., the parent company of Farstad Oil Inc. and Superpumper Inc. for $89 million cash and about $21 million in common shares of Parkland. The transaction is expected to close Jan. 1.
The company's strategy is to grow in areas with strong future prospects where it can immediately add value through strong supply capability, said Parkland President and CEO Bob Espey.
"Extending our operations into the Northwest United States, an area experiencing strong economic growth, fits both these parameters," Espey said in a statement. "Parkland's acquisition plan has progressed faster than originally anticipated due to a strong acquisition pipeline that continues to present us with a number of very attractive opportunities."
Minot, N.D.-based SPF Energy supplies 300 million gallons of refined petroleum products, including gasoline, distillates and lubricating oils throughout North Dakota, Montana, Minnesota, South Dakota and Wyoming. The company services more than 200 independent gasoline stations. It also has rail trans-loading facilities and 40,000 barrels of bulk storage in the town of Minot.
Since 1938, SPF Energy has grown from family-operated bulk fuels business into North Dakota's largest distributor.
Get your copy of The Ranger online, every day! If you are a current print subscriber and want to also access dailyranger.com online (there is nothing more to purchase) including being able to download The Mining and Energy Edition, click here. Looking to start a new online subscription to dailyranger.com (even if it is for just one day)? Access our secure SSL encrypted server and start your subscription now by clicking here.