Parkland Fuel Corp., which has taken pride in its ability to seize emerging opportunities in the Canadian marketplace, is spreading its wings into the United States with a $110 million purchase of SPF Energy to acquire a North Dakota fuel distribution business.
Based in Red Deer, central Alberta, Parkland said it is buying all the outstanding shares of SPF, the parent company of Farstad Oil and Superpumper, for $89 million in cash and about $21 million of its own common shares. The closure date for the deal is set for Jan. 1.
Parkland Chief Executive Officer Bob Espey said his company aims to grow in areas with strong future prospects where its supply capability can quickly add value.
He said the “strong economic growth” in the northwest U.S. fits with Parkland’s strategy.
SPF, based in Minot, N.D., supplies 300 million gallons of refined petroleum products, including gasoline, distillates and lubricating oil throughout North Dakota, Montana, Minnesota, South Dakota and Wyoming, servicing more than 200 independent gasoline stations.
In addition, SPF has rail transloading facilities and 40,000 barrels of bulk storage in Minot.
SPF Chief Executive Officer Jeff Farstad said he is confident his company’s employees will have opportunities to grow with Parkland.
—Gary Park
