CALGARY, AB, Sept. 3, 2024 – ECNETNews reports that Parkland Corporation has announced plans to divest its retail and commercial operations in Florida. This strategic move aligns with the company’s goals outlined in their November 2023 strategy, aiming to double cash flow per share to $8.50 and increase Adjusted EBITDA to $2.5 billion by 2028 through organic growth, cost reduction, and supply chain optimization.
Parkland’s President and CEO emphasized the decision to redirect capital toward higher return opportunities to enhance shareholder value, reaffirming their commitment to a robust northern US business that continues to perform well and maintain strong ties with Canada.
While the Florida improvement plan is proceeding, Parkland is pivoting toward more lucrative investment opportunities in other sectors of its business, reinforcing its focus on disciplined capital allocation and maximizing returns.
The Florida operations include around 100 retail locations, nine cardlock facilities, and four bulk storage plants. Initial interest in these assets has been substantial, and Parkland anticipates completing the sale within the next 12 to 18 months.
This sale is part of Parkland’s broader initiative to divest non-core assets, with expectations that total proceeds will exceed $500 million by the end of 2025. Additionally, the company plans to finalize the sale of its Canadian propane business in the fourth quarter of 2024, which is expected to provide cash proceeds of $115 million along with a long-term supply contract.
Parkland Corporation, a leading international fuel distributor and convenience retailer, operates in 26 countries, serving over one million customers daily with a network of approximately 4,000 locations across North America and the Caribbean. The company is committed to enhancing customer satisfaction through a competitive pricing strategy, reliable service, and a focus on sustainable energy solutions.
Forward-looking statements within this release indicate Parkland’s ambition to divest its Florida business as part of its ongoing strategy to bolster cash flow and maximize shareholder value. The company remains focused on improving returns through targeted investments while closely managing risks and uncertainties associated with the market.
