Canada’s largest independent marketers of fuel and petroleum products, Parkland Fuel Corporation (Parkland), Wednesday announced it had entered into an agreement with the Barbados-based SOL Investments Limited (SIL) to acquire 75 per cent of its operations.
Largest fuel marketing company
SOL, a privately-held company owned by the Simpson Group, is the largest independent fuel marketer in the Caribbean with SIL being a wholly-owned subsidiary of SOL Limited.
SOL supplies and markets a total of 4.8 billion liters of fuel volume annually across 23 countries in the Caribbean and generated US$215 million in adjusted earnings before taxes, depreciation and amortization in the 12-month period ending June 2018.
According to a statement on Wednesday, the transaction will result in Parkland acquiring 75 per cent of the issued and outstanding shares in the capital of SIL for an estimated US$1.21 billion plus customary post-closing adjustments on a cash-free and debt-free basis.
SOL Limited will acquire 12.16 million common shares in the capital of Parkland. The founder of SOL, Sir Kyffin Simpson, said he was “exceptionally pleased to announce the coming together of Parkland and SOL, which will ensure an exciting and dynamic future for everyone.