Parkland Fuel Corp., a Canadian distributor of fuels and petroleum products, acquired Rhinehart Oil Co. in a deal that is expected to double the United States operations of the Calgary, Alberta-based company, Parkland announced Monday.
Financial terms of the agreement were not disclosed, and the deal should close by Aug. 27. Utah-based Rhinehart will keep its brand names across all of its operations, said Rhinehart co-CEO Dave Jardine in a company press release.
Rhinehart distributes approximately 72 million gallons of fuel and lubricants per year, a number that doubles Parklands U.S. operations, according to Parklands press release. With the acquisition, Rhineharts 10 distribution facilities join Parklands three, two of which are located in North Dakota and the third in Montana, to create a network of 13 distribution facilities.
We intend to maintain and grow the existing Rhinehart lubricants business, which is one of the largest in the Rockies, a Parkland spokesperson told Lube Report.
The company plans to continue investing in bulk storage and packaging facilities that handle bulk lubricant shipments into the Rockies and the Dakotas. That, in turn, should supply our own distribution facilities as well as many other smaller distributors across the region.
Parkland did not respond to additional questions regarding the cost of the acquisition, its current lubricant sales volume or the reason for its interest in Rhinehart.
The addition of Rhinehart to the Parkland USA team provides us with the talented staff and scalable infrastructure we need to establish our Regional Operations Center for the Rocky Mountain tributary, said Doug Haugh, president and CEO of subsidiary Parkland USA.
This ROC will be the operating platform that drives organic growth and enables further acquisitions across the region that can leverage substantial existing capacity within their current rail hubs, bulk storage terminals, and warehouses, he continued.
Through its lubricants business, Farstad Oil, Parkland delivers ExxonMobils range of industrial mineral and synthetic lubricants to the mining, oil exploration, power, agriculture and construction industries in Montana, Wyoming, North Dakota, South Dakota and Minnesota. The company is Canadas largest independent supplier and marketer of fuel and petroleum products, and also operates convenience stores.
American Fork, Utah-based Rhinehart is a lubricants, commercial fuel and retail business which operates in Utah, Colorado, Wyoming and New Mexico. The company owns four cardlock facilities, nine convenience stores and 10 distribution facilities that market ExxonMobil lubricants, and is an exclusive original equipment manufacturer lubricant supplier for Toyota, Nissan, Mercedes Benz, SAAB, Porsche, Lexus, Bentley and KIA.