PKIUF - Parkland Fuel's SOL Acquisition Is Beneficial
Investment Thesis
On October 10, 2018, Parkland Fuel Corporation (PKIUF) [TSX:PKI] announced its acquisition of SOL, a Caribbean-based fuel marketer. The purchase price appears to be reasonable. The market fundamentals in the region are also quite attractive. There are also synergies to be realized. We believe share price of Parkland Fuel should trend higher, as the acquisition will significantly increase its EBITDA by over 26% (pro forma).
Source: Investor Presentation
Who is SOL?
SOL is the largest fuel marketer in the Caribbean. It supplies and markets 4.8 billion liters of fuel annually across