"This acquisition provides a platform to grow our food offer, expand our proprietary brands, and advance our digital and loyalty strategy," said
The acquisition includes over 300 well-located standalone franchise and corporate owned stores, over 2,000 M&M Express locations, and a well-established rewards program with approximately two million active members. Led by an experienced management team who have a proven track record of growth and a food-first culture, M&M will create quality food options that our customers can consume fresh-from-frozen, both on site and on the go, and prepared from frozen at home. We will leverage these capabilities throughout our existing network and soon to be launched standalone ON the RUN convenience locations.
"Parkland's ON the RUN brand is a convenience retail leader and we are excited to combine our two offerings," said
This Acquisition enables key elements of our strategy:
- Advances our enterprise food strategy: Adds a proprietary brand, experienced team, franchisee network, and a scalable fresh and fresh-from-frozen food growth platform across all our markets. We will leverage M&M's expertise and track record of developing successful menus in its innovation kitchen to evaluate and develop additional fresh and quick-serve food choices across our network.
- Advances our digital strategy and creates a premier Canadian loyalty program: By combining JOURNIE™ and M&M's reward programs which has two million active members, we will create extensive cross-promotional opportunities and form one of
Canada's premier loyalty programs. - Enhances our ON the RUN customer value proposition: M&M will be integral to our growing On the Run network, bolstering our in-store, e-commerce and home delivery offers, and supporting our standalone convenience concept.
- Capital-light: M&M leverages a well-established, highly efficient food preparation and distribution network, requiring limited capital investment to efficiently serve its retail locations.
- Ratable cash flow with significant growth potential: M&M's royalty fee-based operating model creates a ratable stream of cash flow. We aim to grow M&M's Canadian annual run rate Adjusted EBITDA to approximately
$55 million in three years.
The total consideration for this transaction is approximately
Acquisition Conference Call and Webcast Details
Parkland will host a webcast and conference call on
Analysts and institutional investors interested in participating in the question-and-answer session of the conference call may do so by calling 1-888-390-0546 (toll-free) (Conference ID: 68511332). International participants can call 1-800-389-0704 (toll) (Conference ID: 68511332).
Please connect and log in approximately 10 minutes before the beginning of the call. The webcast will be available for replay two hours after the conference call ends at the link above. It will remain available for one year and will also be posted to www.parkland.ca.
About
Parkland's purpose is to Power Journeys and Energize Communities. We are a leading operator and consolidator of convenience retail and fuel marketing businesses. Through our portfolio of trusted and locally relevant convenience, retail, commercial and wholesale brands, we serve over one million customers per day across
Parkland's proven strategy is centered around growing organically, realizing a supply advantage, acquiring prudently, and integrating successfully. We are positioned to win through the energy transition and are focused on developing our existing business in resilient markets, further diversifying our retail business into convenience, food, and EV charging, and helping our commercial customers decarbonize their operations. Our strategy is enabled and underpinned by our people, as well as our values of safety, integrity, community, and respect, which are deeply embedded across our organization.
About
Founded in 1980,
Forward Looking Statement
Certain statements contained in this news release constitute forward-looking information and statements (collectively, "forward-looking statements"). When used in this news release the words "expect", "will", "could", "would", "believe", "continue", "pursue" and similar expressions are intended to identify forward-looking statements. In particular, this news release contains forward-looking statements with respect to, among other things, the successful completion of the Acquisition and the timing thereof; expected benefits of the acquisition, including: potential organic growth, creating convenience destinations; expanding Parkland's food offerings throughout its existing network; creating a loyalty coalition between the M&M and JOURNIE™ rewards programs; expected future increase to the run rate Adjusted EBITDA of the M&M business and the timing thereof; and the launch of standalone ON the RUN convenience locations.
These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. These forward-looking statements speak only as of the date of this news release. Parkland does not undertake any obligations to publicly update or revise any forward-looking statements except as may be required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties including, but not limited to, failure to complete the Acquisition; failure to satisfy the conditions to closing of the Acquisition; failure to realize all or any of the anticipated benefits of the Acquisition; general economic, market and business conditions; competitive action by other companies; the ability of suppliers to meet commitments; actions by governmental authorities and other regulators including but not limited to increases in taxes or restricted access to markets; changes and developments in environmental and other regulations; and other factors, many of which are beyond the control of Parkland. See also the risks and uncertainties described in "Forward-Looking Information" and "Risk Factors" included in Parkland's Annual Information Form dated
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