Parkland agrees to sell Canadian propane business

Parkland Corp. entered into an agreement with Avenir Energy Ltd. to divest its Canadian commercial propane business for cash consideration of about $115 million and to exclusively supply fuel for 10 years.

“This transaction is a big step toward achieving our target of $500 million from the divestment of non-core assets by the end of 2025,” says Ian White, president of Parkland Canada. “By focusing on our core assets, we are simplifying our business to improve returns. Driven by our customer focus, we continue to see tremendous opportunity to deliver growth and value from our Canadian business.”

Subject to certain closing conditions, the transaction is expected to close in the fourth quarter of 2024. Scotiabank is acting as the financial adviser for the divestment.

Parkland is an international fuel distributor, marketer and convenience retailer with about 4,000 retail and commercial locations in 26 countries across the Americas. It serves more than 1 million customers each day. Its commercial operations provide businesses with industrial fuels. The company also provides renewable fuel sourcing, manufacturing and blending, as well as carbon and renewables trading, solar power and electric vehicle charging.

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