Co-op investing in Western Canada with retail fuel sites acquisition
November 30, 2021
Federated Co-operatives Limited (FCL), on behalf of local Co-ops in the Co-operative Retailing System (CRS), has agreed to invest $264 million to purchase 181 Husky retail fuel sites from certain wholly-owned subsidiaries of Cenovus Energy Inc. This represents the largest retail acquisition in Co-op's history.
The acquired retail fuel sites include a mix of gas bars, on-site car washes and convenience stores. Once the deal is complete, FCL will transfer the sites to several independent local Co-ops across Western Canada. These new locations will strengthen our presence in Western Canada and will bring our unmatched service and support to new geographic areas.
“This historic deal for our organization clearly aligns with our vision of building sustainable communities together and reaffirms our commitment to Western Canada, to our member-owned Co-ops and to their local members and customers,” said FCL CEO Scott Banda. “By increasing our retail footprint, we further strengthen our position to meet the needs of our local Co-ops and their communities into the future.”
The expansion of Co-op’s retail network also advances production at the Co-op Refinery Complex and the Co-op Ethanol Complex along with the important economic contribution these facilities provide to the CRS and local communities across Western Canada. This investment also puts FCL in a position to move forward with initiatives that take a leadership role in the transition to a low-carbon economy as evidenced by recent announcements highlighting planned investments in carbon capture and renewable diesel production.
“This deal strikes a positive balance between the current and future needs of our Western Canadian customers,” said Banda. “We are committed to enhancing the sustainability of our fuels and recognize the important role co-operatives play in responding to the needs of our communities, members and customers. Co-op is an integral part of so many neighbourhoods and communities. We’re looking forward to extending our reach, and continuing to fuel Western Canada, through this deal.”
The purchase of the 181 retail fuel sites is subject to certain customary closing conditions, including clearance by the Canadian Competition Bureau.
- 181 retail fuel sites to be purchased by FCL.
- Retail fuel sites included in the purchase are located across Western Canada.
- The purchase includes both corporate-owned and dealer-owned and operated sites, as well as on-site car washes in some locations.
Scotiabank acted as exclusive financial advisor to FCL on this transaction.