05-05-2025

Sunoco to acquire Parkland

Sunoco LP and Parkland Corporation announced today that they have entered into a definitive agreement whereby Sunoco will acquire all outstanding shares of Parkland in a cash and equity transaction valued at approximately U.S.$9.1 billion, including assumed debt.

"This strategic combination is a compelling outcome for Parkland shareholders," said Michael Jennings, Executive Chairman of Parkland. "The Board unanimously recommends the proposed transaction, recognizing Sunoco’s commitment to safeguarding Canadian jobs, retaining the Calgary head office, and further investing in Canada. This partnership creates significant financial benefits for shareholders and would position the combined company as the largest independent fuel distributor in the Americas."

"Today marks a significant milestone," said Bob Espey, President and CEO of Parkland. "This transaction delivers immediate value for shareholders, including an attractive 25% premium. Sunoco shares our commitment to growth, customer service, operational excellence, and ongoing investment in Canada, making our combined business stronger and better positioned for sustained success."

Strategic Rationale
Compelling Financial Benefits: Immediately accretive, with 10%+ accretion to distributable cash flow per common unit and U.S.$250 million in run-rate synergies by Year 3. The combined company expects to return to Sunoco’s 4x long-term leverage target within 12-18 months post-close.

Industry Leading Scale and Stability: Complementary assets enables advantaged fuel supply and further diversifies Sunoco’s portfolio and geographic footprint.

Accelerated Accretive Growth: Increases cash flow generation for reinvestment and distribution growth.

Continued Commitment to Canada and Responsible Stewardship
Employment in Canada:
Sunoco will maintain a Canadian headquarters in Calgary and significant employment levels in Canada.

Burnaby Refinery:
Sunoco is committed to continuing to invest in Parkland’s innovative refinery, which produces low-carbon fuels, while maintaining safe, healthy and growing operations for the long-term. The refinery will continue to operate and supply fuel within the Lower Mainland.

Transportation Energy Infrastructure Expansion:
Sunoco will continue to support Parkland’s plan to expand its Canadian transportation energy infrastructure.

Expanded Investment Opportunities:
The combined company’s expanded free cash flow will provide additional resources for reinvestment in Canada, the Caribbean, and the United States in support of both existing and new opportunities.