Sunoco LP (NYSE: SUN) said on Monday it will acquire Parkland Corp (TSX: PKI) in a cash-and-equity transaction valued at $9.1 billion.
As part of the deal, Sunoco will create SUNCorp, LLC, a new publicly traded entity that will hold limited partnership units of Sunoco, equivalent to its common units.
Under the agreement, Parkland shareholders will receive 0.295 SUNCorp units and C$19.80 in cash per share, reflecting a 25% premium.
Sunoco has secured a $2.65 billion bridge loan to finance the cash portion of the transaction. Both companies’ boards have approved the deal, which is expected to close in the second half of 2025, pending Parkland shareholder approval and regulatory clearances.
The acquisition will be immediately accretive to Sunoco’s distributable cash flow per unit, with over 10% accretion and $250 million in annual synergies expected by Year 3. Sunoco aims to return to its long-term leverage target of 4x within 12-18 months post-close.
The deal will also maintain Sunoco’s Canadian operations, including a headquarters in Calgary, local employment, and investment in Parkland’s Burnaby refinery. Sunoco said it plans to support Parkland’s Canadian transportation energy infrastructure expansion and reinvesting in Canada, the U.S., and the Caribbean.
Shares of Sunoco fell 5.9% in New York Monday morning, while Parkland shares gained 7.5% in Toronto.