Parkland Fuel Corp. announced Aug. 13 that through its U.S.-based subsidiaries it has agreed to acquire Rhinehart Oil Co., Inc. for an undisclosed amount.
The Calgary-based company expects to close the acquisition on or about Aug. 27 and to fund the deal through cash flows and capacity under Parkland's existing credit facility.
Rhinehart, based in American Fork, Utah, distributes approximately 72 million gallons of fuel and lubricants per year in Utah, Colorado and New Mexico through four cardlock facilities, which are unattended facilities for refueling commercial vehicles, nine retail sites and 10 wholesale distribution facilities.
Parkland executives said the deal represents a "significant expansion" that will "serve as a platform for growth" in the western U.S.
"[Rhinehart Oil Co.] 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," Parkland USA President Doug Haugh said.