UPDATE: Parkland Fuel Corporation Acquires AvenEx's Elbow River Marketing for $80 M; Parkland Up 3% to New Yr High, AvenEx Down 15%
Parkland Fuel Corporation (PKI.TO) today announced that it has entered into a definitive agreement to acquire the assets of Elbow River Marketing Limited Partnership from AvenEx Energy Corporation (AVF.TO). The Acquisition is expected to close and be effective on or around February 15, 2013.
Subject to satisfaction of closing conditions, the assets of Elbow River will be purchased for total cash consideration of $80 million and the assumption of between $10 million and $15 million in debt;
Elbow River's EBITDA for the four quarters preceding September 30, 2012 was approximately $20 million;
Expected to be accretive to Parkland shareholders at $0.13/share in net earnings and $0.16/share in distributable cash flow on an annualized basis;
Parkland's current financial position is sufficient to fund this transaction; and
Elbow River's current annual sales volumes of approximately 2 billion litres are in addition to Parkland's 2016 target of seven billion litres in fuel sales as outlined in Parkland Penny Plan.
PKI, which was down 8 cents to $18.52 late morning, is now trading at a new yr high of $19.17. Day range is $18.49 - 19.42. More than 255,000 shares have been traded.
AvenEx is down 15.6% to $2.80.
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.