Parkland to Consolidate International Segment

The company also delivered record quarterly results and increased its 2022 guidance.

August 05, 2022

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CALGARY, Alberta, Canada—Parkland Corporation announced it has entered into a share exchange agreement with Simpson Oil to exchange Simpson Oil's remaining 25% of Sol Investments for 20 million Parkland shares in the capital of Parkland. Following the deal’s close, Parkland will hold 100% of the securities of Sol, an international growth platform which spans 23 countries in the Caribbean region and South America.

"We are excited to have the Simpson family expand their ownership in Parkland," said Bob Espey, president and chief executive officer, Parkland. "We value the Simpson's confidence in our growth strategy and long-term vision and are grateful for their ongoing support for the Parkland team. We are consolidating our ownership of Sol in a way that is immediately accretive to shareholders."

Simpson Oil has been a Parkland shareholder since 2017 and has grown its shareholding to beneficially own, directly or indirectly, or exercise control or direction over, about 14.4 million Parkland shares, representing 9.24% of the issued and outstanding Parkland shares on a nondiluted basis.

Following completion of the share exchange, Simpson Oil and, if applicable, its affiliates will own about 34.4 million Parkland shares, representing 19.54% of the issued and outstanding Parkland shares on a pro-forma, nondiluted basis.

"We are delighted to expand our ownership in Parkland," said Sir Kyffin Simpson, CBE and founder of Simpson Oil. "We have tremendous confidence in the company, its management team and its bright future. We look forward to participating in its continued success as a long-term supportive shareholder with an investment horizon through the next decade and beyond."

The share exchange is expected to close in 2022, subject to the approval of the Toronto Stock Exchange and receipt of any other required regulatory approvals.

Additionally, Parkland has delivered record quarterly results and increased its 2022 guidance.

"Our record results demonstrate the resilience of our integrated business model and our ability to grow throughout economic cycles," said Espey. "The Parkland team continues to serve the needs of our customers, while simultaneously mitigating inflation, driving organic growth and strengthening our financial flexibility."