Parkland Fuel Corp. acquired Holbrook, Arizona-based Bradco Fuels and Lubricants, the companies announced last week. It was the third acquisition this year for Parkland, which is scaling up its business in the United States.
Bradco – a distributor of ExxonMobil lubricants and specialty products in New Mexico and Arizona – will operate under the Calgary-based companys United States subsidiary, Parkland USA. Neither company disclosed Bradcos current lubricant distribution volumes, nor did they reveal financial terms of the deal.
Per the terms of agreement, Parkland will acquire all real estate assets used for Bradcos business, which includes four cardlock facilities throughout Arizona.
Parkland already operates in New Mexico, but Laura Varn, spokesperson for Parkland USA, believes Bradcos presence there will benefit the companys New Mexico operations. This acquisition will allow for further penetration into [New Mexico] and the ability to organically grow there, she said. Additionally, it allows for the scaling of resources into [Arizona] where Bradco already operates.
We now have the ability to grow organically with the additional national resources, and this will benefit our customers in the regions we serve, said Bradco President John Bradley in the companys press release.
American Fork, Utah-headquartered Rhinehart, which was acquired in August, operates in Utah, Colorado, Wyoming and New Mexico. Rhinehart distributes approximately 72 million gallons of fuel and lubricants annually, which doubled Parklands U.S. distribution volume at the time.
One month later Parkland acquired MVP, which operates in North Dakota and South Dakota. The Mandan, North Dakota-based company distributes approximately 84 million gallons of fuel and petroleum products annually.
The companys lubricants business, Farstad Oil Inc., delivers ExxonMobil industrial, mineral and synthetic lubricants to several industries-including mining, oil exploration, power, agriculture and construction-across Montana, Wyoming, North Dakota, South Dakota and Minnesota.
The recent acquisitions are part of Parklands aggressive expansion plans in the U.S. Our strategy is to find healthy companies that are going through generational transitions, Varn told Lube Report. We see ample growth in the lubes market, and aim to be one of the largest players in the market in time.
Varn did not disclose Parklands current lubricant distribution volume. What I can say, she said, is while we are not at the volume level of Brenntag or PetroChoice, we do believe over time we can substantially grow our lube business, and we aim to be competitive with the big companies.
Parkland is Canadas largest independent supplier and marketer of fuel and petroleum products and also operates convenience stores.