Parkland Income Fund acquires new transportation business for $9.1 million

« Back to News Releases

Share Email this page  |  Print page  |  Share Share this page
    RED DEER, AB, Feb. 28 /CNW/ - Parkland Income Fund (TSX: PKI.UN) today
announced that it has completed the acquisition of the business of Wiebe
Transport Inc. ("Wiebe") for $9.1 million.
    Headquartered in Grande Prairie, Alberta, Wiebe Transport is a freight
transportation company specializing in hauling commodities such as fuel,
fertilizer, grain and other commodities. They also operate a rail distribution
centre located in Grande Prairie and mechanical and repair shops in both
Grande Prairie and La Crete, Alberta. Wiebe transports goods throughout
Western Canada and runs into the United States.
    Parkland's President and CEO Mike Chorlton said, "The acquisition of
Wiebe is exciting as it is highly complementary to our existing in-house fuel
and related products hauling service. It will immediately meet our near-term
objective of having the capacity to haul the majority of our retail and
wholesale fuel volumes. This purchase will substantially replace the 2008
capital expenditures planned for our trucking division. It will be accretive
to Parkland through profitable customer services and internal cost savings."
    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. The rail distribution centre adds
synergy to Parkland's current supply and distribution capabilities. The
maintenance facilities will increase our 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
    The acquisition was completed for a price of $9.1 million consisting of
the issuance of 167,873 Class C Limited Partnership Units valued at $2,320,000
(at $13.82 per unit being the 10 day volume weighted average price of Parkland
units trading on the TSX) and the balance drawn from Parkland's cash on hand
and incremental borrowing. Class C Limited Partnership Units receive the same
monthly distributions as Fund Units, have certain voting rights and are
convertible into regular Fund units.

    Parkland Income Fund operates retail and wholesale fuels and convenience
store businesses under its Fas Gas Plus, Fas Gas, Race Trac Fuels and Short
Stop Food Stores brands and through independent branded dealers, and
transports fuel through its Petrohaul division. With approximately 550
locations, Parkland has developed a strong market niche in western and
northern Canadian non-urban markets. Through Neufeld and Joy the Fund markets
propane, gasoline, diesel, lubricants, industrial fluids, agricultural inputs
and delivery services to commercial and industrial customers in northern
Alberta, northeastern British Columbia and the Northwest Territories. Through
United Petroleum the Fund markets wholesale and commercial fuels and
lubricants throughout southern British Columbia. To maximize value for its
unitholders, the Fund is focused on the continuous refinement of its retail
portfolio, increased revenue diversification through growth in non-fuel
revenues and active supply chain management. Parkland operates the Bowden
refinery near Red Deer, Alberta producing drilling fluids on a contract basis.
    The Fund's units trade on the Toronto Stock Exchange (TSX) under the
symbol PKI.UN. For more information, visit

    Certain information included herein is forward-looking. Forward-looking
statements include, without limitation, statements regarding the future
financial position, business strategy, budgets, projected costs, capital
expenditures, financial results, taxes and plans and objectives of or
involving Parkland. Many of these statements can be identified by looking for
words such as "believe", "expects", "expected", "will", "intends", "projects",
"projected", "anticipates", "estimates", "continues", or similar words and
include but are not limited to, statements regarding the accretive effects of
the acquisition and the anticipated benefits of the acquisition. Parkland
believes the expectations reflected in such forward-looking statements are
reasonable but no assurance can be given that these expectations will prove to
be correct and such forward-looking statements should not be unduly relied
upon. Forward-looking statements are not guarantees of future performance and
involve a number of risks and uncertainties some of which are described in the
Fund's annual report, annual information form and other continuous disclosure
documents. Such forward-looking statements necessarily involve known and
unknown risks and uncertainties and other factors, which may cause the Fund's
actual performance and financial results in future periods to differ
materially from any projections of future performance or results expressed or
implied by such forward-looking statements. Such factors include, but are not
limited to: general economic, market and business conditions; industry
capacity; competitive action by other companies; refining and marketing
margins; the ability of suppliers to meet commitments; actions by governmental
authorities including increases in taxes; changes in environmental and other
regulations; and other factors, many of which are beyond the control of
Parkland. Any forward-looking statements are made as of the date hereof and
the Fund does not undertake any obligation, except as required under
applicable law, to publicly update or revise such statements to reflect new
information, subsequent or otherwise.

    If you prefer to receive Company news releases via e-mail, please request

For further information: Parkland Industries Ltd., Administrator of
Parkland Income Fund: Red Deer: Mike W. Chorlton, President and CEO, (403)
357-6400; John G. Schroeder, Vice President and CFO, (403) 357-6400