Imperial Oil has reached agreements with five fuel distributors in Canada to sell its remaining 497 company-owned Esso retail stations for $2.8 billion.
Distributors purchasing the sites include Alimentation Couche-Tard Inc. with 279 retail stations in Ontario and Quebec; 7-Eleven Canada Inc. with 148 sites in Alberta and British Columbia; Harnois Groupe Pétrolier, which purchases 36 sites in Quebec; Parkland Fuel Corp. with 17 sites in Saskatchewan and Manitoba; and Wilson Fuel Co. Limited with 17 sites in Nova Scotia and Newfoundland.
The sales are anticipated to close by year-end 2016, subject to regulatory approvals. Proceeds from the transactions are valued at about C$2.8 billion.
“We believe these agreements represent the best way for Imperial to grow in the highly competitive Canadian fuels marketing business,” said Rich Kruger, chairman, president and chief executive officer of Imperial. “The Esso brand has a leading presence in Canada through our distributor network and strong prospects for continued growth to the benefit of our customers and shareholders.”
More than 1,700 Esso retail stations currently operate in Canada.
Of the 279 fuel stations purchased by Couche-Tard, 229 are located in Ontario - the majority of which in the Greater Toronto Area - and 50 sites are located in Québec. The total transaction is priced at C$1.6 million, according to the convenience giant.
“Esso is a great brand and a strong partner and we look forward to expanding our relationship with them," said Brian Hannasch, President & CEO of Couche-Tard.
