Canadian fuel marketer and distributor Parkland Fuel Corp. said Oct. 10 that it will acquire a 75% interest in Caribbean-based Sol Investments Ltd and its subsidiaries for C$1.57 billion, or US$1.21 billion.
The deal will allow Parkland to expand ts presence in the U.S. Gulf and Atlantic coasts, with access to 526 retail gas stations.
A privately held company owned by the Simpson Group, SOL is the largest independent fuel marketer in the Caribbean and a wholly owned subsidiary of SOL Limited. Upon closing, the Simpson Group will own approximately 9.9% of the issued and outstanding shares in Parkland. Parkland will also get a call right to purchase the remaining 25% stake in the company.
The transaction, which is expected to close late in the fourth quarter, will be financed by Parkland via debt financing of approximately C$1.1 billion underwritten by the Canadian Imperial Bank of Commerce and National Bank of Canada.
Once the deal is completed, the SOL operating brands will remain in place, and key SOL management will be retained.