A Canadian fuel supplier and reseller plans to enter the U.S. market with a $110 million purchase of a North Dakota fuel distribution business.
Red Deer, Alberta-based Parkland Fuel Corp. says it is buying all outstanding shares of SPF Energy Inc. for $89 million IN cash and about $21 million in common shares of Parkland.
The transaction is expected to close on Jan. 1.
Parkland CEO Bob Espey says the company's strategy is to grow in areas with strong future prospects where it can add value through strong supply capability.
Minot-based SPF Energy is the parent company of Farstad Oil Inc. and Superpumper Inc.
The company supplies 300 million gallons of refined petroleum products including gasoline, distillates and lubricating oils throughout North Dakota, Montana, Minnesota, South Dakota and Wyoming.