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02:44:46 EDT Thu 17 Apr 2014
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Parkland Fuel Corp
Symbol C : PKI
Shares Issued 69,054,697
Close 2013-04-01 C$ 16.83
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Parkland Fuel to supply Morgan Stanley fuel in Quebec

2013-04-02 15:16 ET - News Release

Mr. Bob Espey reports

PARKLAND FUEL CORPORATION ENTERS QUEBEC MARKET WITH NEW SUPPLY AGREEMENT AND ASSUMPTION OF TRANSMONTAIGNE BUSINESS

Parkland Fuel Corp. has entered into agreements to be Morgan Stanley's fuel marketer in the province of Quebec, to assume the customers and assets of TransMontaigne Marketing Canada Inc., and to lease terminal storage through CanTerm Canadian Terminals Inc. in both Montreal and Quebec City. The arrangements are expected to close on May 2, 2013.

Arrangement highlights

Grow:

  • Acquisition of TransMontaigne's business through a supply agreement and the assumption of accounts receivable;
  • More than 500 million litres of low-margin wholesale fuel volumes annually in Quebec and Ontario;
  • A new supply platform to support growth in Quebec.

Supply:

  • Accomplishes Parkland's objective to establish access to fuel terminal storage in Eastern Canada;
  • Adds a new supply partner through Morgan Stanley to further enhance Parkland's supply options in Ontario and Quebec;
  • Adds to Parkland's strategic supply infrastructure portfolio.

Operate:

  • Ontario business to be immediately integrated into Parkland's operating platform;
  • Quebec office to remain intact under the operating name Les Petroles Parkland.

TransMontaigne Marketing Canada is a leading wholesale marketer of fuel products in Ontario and Quebec selling conventional gasoline, E10 ethanol gasoline, ultralow-sulphur diesel, biodiesel blends, heating oil and heavy fuel oil. TransMontaigne has established a record of being a reliable supplier of quality petroleum products through a focus on safety, efficiency, flexibility and customer service.

"Adding Morgan Stanley to our national supply portfolio, coupled with access to fuel terminal storage, provides an excellent platform for us to grow and acquire volume in Quebec," said Bob Espey, president and chief executive officer of Parkland. "While only modestly profitable at this time, this is a strategic acquisition with significant growth potential."

The arrangements are subject to the receipt of all necessary third party and regulatory approvals, including approval under the Competition Act.

Penny plan 2013 update

On April 15, 2013, Parkland will host an investor event in Toronto for analysts and institutional investors that will review this transaction in the context of Parkland's five-year growth strategy. The event will start at 9 a.m. (Eastern Time) (7 a.m. (Mountain Time)).

Interested analysts and institutional investors who have not received an invitation should contact Parkland Fuel's investor relations contact, Tom McMillan, at 1-800-662-7177, extension 2533. The registration deadline is April 8, 2013.

Investors interested in viewing the webcast of this event are advised to log-in to the webcast slide presentation 10 minutes before the start time.

To access the conference call by telephone from within Canada dial toll-free 1-888-241-0394. International callers or callers from the Toronto area should use 647-427-3413. Please connect approximately 10 minutes prior to the beginning of the call and quote the conference ID No. 22088801.

The webcast will be available within 24 hours of the conference call. It will remain available for one year.

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