Parkland Fuel Corp. of Galgary, Alberta, Canada has acquired American Fork-based Rhinehart Oil Co. Inc. Parkland is Canada’s largest independent fuel and lubricants marketer, according to a release from the company. Parkland made the acquisition through its U.S.-based subsidiary Parkland USA.
Rhinehart Oil, established in 1976, employs 70 in its retail, commercial and lubricants business that operates in Utah, Colorado, Wyoming and New Mexico. The company distributes and markets a full range of fuels, lubricants and chemical products in addition to providing equipment and servicing to its customers in the region. {mprestriction ids="1,3"}Rhinehart operates and supplies four card-lock facilities, nine retail sites and markets and distributes fuels, lubricants and specialties through 10 distribution facilities. Rhinehart distributes approximately 72 million gallons of fuel and lubricants per year, the release said.
“The Rhinehart acquisition represents a significant expansion for Parkland,” said Bob Espey, president and CEO of Parkland. “Rhinehart has an excellent business and asset base that will serve as a platform for growth in Utah, Colorado and neighboring states. We are excited to welcome Dave and John Jardine from the Rhinehart leadership team and the rest of the Rhinehart employees to the Parkland team.”
“Rhinehart is a prominent fuel distributor and a well-scaled and respected ExxonMobil lubricants distributor,” said Doug Haugh, president of Parkland USA. “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. 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.”
The acquisition is expected to close on or about Aug. 27 and is expected to be funded with cash flows and capacity under Parkland’s existing credit facility. The acquisition price was not disclosed.
Parkland operates through retail, commercial and wholesale channels that include the Parkland Burnaby Refinery, a storage infrastructure and convenience stores, including its On the Run/Marché Express stores. The company employs about 1,100. {/mprestriction}
