Brookfield Business Partners L.P. has agreed to acquire 100% of Loblaw Companies Ltd’s gas station operations.
The gas station network includes 213 retail gas stations and associated convenience kiosks adjacent to Loblaw-owned grocery stores across Canada.
Completion of the transaction, which is valued at approximately C$540 million, remains subject to customary closing conditions and is expected to occur in 3Q17.
Brookfield is entering into an agreement with Imperial Oil to rebrand the gas station portfolio to the Mobil fuel brand.
Sarah Davis, President, Loblaw Companies Ltd, said: "In Brookfield we have a strategic partner with an experienced management team and a strong business track record […] They are committed to preserving and growing the elements of the business that matter most to our customers – high quality fuel service and convenience along with PC Plus loyalty benefits. This is a positive outcome for our customers, our gas station operators, and our company."
Cyrus Madon, CEO of Brookfield Business Partners, added: "Our investment in Loblaw's leading portfolio of gas stations presents an opportunity to own a business with significant scale, strong customer loyalty, and compelling opportunities for further growth […] This transaction aligns with our strategy of owning and adding value to high quality businesses with solid long-term fundamentals in sectors we know well. We look forward to working with Loblaw to enhance and grow the current network of gas stations."
Read the article online at: https://www.hydrocarbonengineering.com/refining/20042017/loblaw-sells-gas-station-business/