Canada’s Parkland Income Fund has agreed to buy lubricants and fuel marketer United Petroleum Products of Burnaby, British Columbia. Parkland on May 2 said it expects closing of the acquisition within four weeks, witha purchase price of Canadian $18 million (U.S. $16.3 million).
They are a customer of ours, and they are in markets that are complementary to ours, which allows us to expand our business more towards the west coast, Parkland President and Chief Executive Officer Mike Chorlton told Lube Report. Were in lubricants up in northern Alberta, so it fills in a geographic gap in lubricants for us. Were Alberta-based, in the interior of British Columbia, so it also fills in a bit of a market gap on our wholesale fuels side.
The privately held United Petroleum Products markets lubricants and fuel to a network of commercial accounts and independent service station operators throughout central and western British Columbia. The company offers bulk and packaged products, including branded 76 Lubricants, Kendall Motor Oils, Phillips aviation lubricants and Quaker State.
United Petroleum Products was formed by the combining of Christie/Adams Lubricants division with its Ultra-Fuels Bulk Fuels division. The divisions have served the lower mainland, Vancouver Island and Interior of British Columbia with lubricants and fuels for about 40 years.
Headquartered in Red Deer, Alberta, Parkland is an unincorporated, open-ended limited purpose mutual fund trust established in April 2002. It was created to acquire the fuel marketing, convenience stores and related ancillary businesses formerly owned by Parkland Industries Ltd.
Through Neufeld Petroleum and Propane, which Parkland acquired in January for Canadian $133 million, the fund markets lubricants, industrial fluids, propane, gasoline, diesel fuel and delivery services to commercial and industrial customers in northern Alberta, northeastern British Columbia and the Northwest Territories. It also operates a retail and wholesale fuels and convenience store business under its marketing brands Fas Gas, RT Fuels and Short Stop.
Last month Parkland acquired Joy Propane of Dawson Creek, British Columbia, for Canadian $16.3 million.