Parkland Corporation, announced it has entered into an agreement with Avenir Energy to divest its Canadian commercial propane business for cash consideration of approximately $115 million, and to exclusively supply fuel for ten years.

“This transaction is a big step toward achieving our target of $500 million from the divestment of non-core assets by the end of 2025,” says Ian White, President of Parkland Canada. “By focusing on our core assets, we are simplifying our business to improve returns. Driven by our customer focus, we continue to see tremendous opportunity to deliver growth and value from our Canadian business.”

Subject to certain closing conditions, the transaction is expected to close in the fourth quarter of 2024. Scotiabank is acting as the financial advisor for the Divestment.