SUMMERSIDE – Canada’s largest independent fuel distributor has acquired island Petroleum Products Ltd. of Prince Edward Island in a cash and equity deal valued at $22.5 million.
The Island-based company was acquired by Bluewave Energy, a division of Parkland Industries LP of Alberta.
The acquisition which was effective Dec. 30, includes 25 delivery trucks, 25 service vehicles, 13 card lock locations both in-land and marine, four office locations and 55 employees.
Blair MacLauchlan, President and co-founder of Island Petroleum said, “We thank all of our loyal customers and dedicated staff for the past three decades, and express our sincere appreciation and best wishes for Island Petroleum’s continued success under the invaluable leadership of Mike Hennessey."
Island Petroleum’s operations will continue under the name Island Petroleum at the existing sites in Charlottetown and Summerside. The business will continue to be managed by Hennessey, general manager, based in Charlottetown and all 55 Island Petroleum employees have been asked to stay to operate the business.
Island Petroleum spent almost 30 years building a brand that is synonymous with quality products and excellent customer service on P.E.I.,” said Bill Sanford, president of Bluewave Energy. “Mike and his team will continue to offer the same strong commitment to the Island Petroleum motto of great service, great people; this really captures the essence of what both our companies are all about,” said Sanford.
Parkland president and CEO Mike Chorlton said the company continues to execute a strategy of growing its share in the Canadian fuel distribution system market through acquisitions that “are immediately accretive on an earnings and cash flow basis.”
“Island Petroleum is the leading independent heating fuel supplier on Prince Edward Island and their focus on customer service excellence and reliable operations have allowed them to garner a loyal and growing customer base,” Chorlton said in a release. “Overall, this operation is a great fit with Parkland and we welcome the Island Petroleum team on board.”