RED DEER, Alta. — Parkland Income Fund has strengthened its operation with the recent acquisition of another Alberta-based carrier.
For the sum of $9.1 million, Parkland brought Wiebe Transport into its fold.
Headquartered in Grande Prairie, Alta., Wiebe Transport specializes in hauling fuel, fertilizer, grain and other commodities. The company also operates a rail distribution centre located in Grande Prairie, along with mechanical and repair shops in both Grande Prairie and La Crete, Alta.
“The acquisition of Wiebe is exciting as it is highly complementary to our existing in-house fuel and related products hauling service,” said Parkland’s president and CEO Mike Chorlton. “It will immediately meet our near-term objective of having the capacity to haul the majority of our retail and wholesale fuel volumes.
Parkland operates approximately 550 retail and wholesale fuel outlets and convenience store businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels and Short Stop Food Stores brands, as well as through independent branded dealers. It also transports fuel through its Petrohaul division.
“The strategic addition of this business will allow Parkland to add capacity, versatility and flexibility in our long haul fleet while adding new service capabilities and customer base,” said Chorlton.
“This purchase will substantially replace the 2008 capital expenditures planned for our trucking division,” he added. “It will be accretive to Parkland through profitable customer services and internal cost savings.”
The rail distribution centre adds synergy to Parkland’s current supply and distribution capabilities. The maintenance facilities will increase the company’s in-house capabilities and improve base fleet costs and utilization.
Wiebe’s president, Ron Wiebe, will continue in the role of general manager and no personnel lay-offs are anticipated as a result of this transaction.
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