Parkland Fuel acquires national cylinder exchange business

Parkland Fuel Corp., a distributor and marketer of fuels and lubricants, signed an agreement to purchase the assets of PNE Corp.

Through the $17 million transaction, Parkland will acquire the assets and operations of PNE, a national provider of propane cylinder exchange services. The acquisition will add a 20-pound cylinder exchange business to the company’s propane business. Parkland already operates a 33- and 100-pound propane cylinder exchange business in Ontario, Canada.

According to Parkland, this transaction will add about 4.5 million gallons of propane to its business on an annual basis and expand its retail business across Canada. The transaction is expected to close by the end of 2016.

“This acquisition introduces a new business line within the propane space for Parkland,” says Bob Espey, Parkland’s president and CEO. “It will allow us to grow our commercial capabilities by introducing and leveraging PNE’s expertise in cylinder refilling and distribution from British Columbia, [Canada], through to Quebec, [Canada]. We look forward to continuing to provide strong customer service nationwide under the PNE banner and welcome PNE team members to Parkland.”