Parkland Corp. (TSX:PKI) has announced its plans to sell its Florida-based retail and commercial businesses as part of a non-core asset divestment program exceeding C$500 million. These assets in Florida include approximately 100 retail locations, nine cardlock facilities, and four bulk-storage plants and warehouses.
Parkland is a global fuel distributor, marketer, and convenience retailer with operations in 26 countries across the Americas. The company’s stock has shown a decrease of 2.78% year-over-year and 18.29% since 2019.
The divestiture is expected to be completed in 12 to 18 months aligning with the company’s goal of doubling cash flow per share to C$8.50 and growing adjusted EBITDA to C$2.5 billion by 2028, as outlined in their five-year plan from November 2023.
In addition to this sale, Parkland is also set to close the previously announced sale of its Canadian propane business in Q4 2024, which will result in C$115 million in cash and a long-term supply contract. These strategic moves come after a request for a strategic review by a shareholder, leading to changes within the company’s leadership team.
Parkland Corp.’s president and CEO, Bob Espey, expressed the company’s commitment to reallocating capital to maximize shareholder value. The company remains dedicated to its business in northern U.S., which is performing well and has strong connections to Canada.
Parkland Corp. (TSX:PKI) stock is currently trading at C$35.70 per share, down by 2.11%, with a year-over-year decrease of 2.78% and a decrease of 18.29% since 2019.
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