The private equity group of Brookfield Asset Management has closed its acquisition of the gas station unit of Loblaw Cos Ltd (TSX: L). The deal, announced in April, saw Brookfield pay the Canadian grocery and pharmacy retailer about $540 million for the asset, which includes 213 gas stations and associated convenience kiosks adjacent to Loblaw-owned stores. Brookfield said the gas stations will be rebranded as Mobil as part of an agreement with Imperial Oil Ltd. Expected to commence this fall, the rebranding marks the introduction of the Mobil fuel brand into Canada.
Brookfield Business Partners Completes Acquisition of Gas Station Business from Loblaw
Gas stations to be rebranded as Mobil
BRAMPTON and TORONTO, ON, July 17, 2017 /CNW/ – Loblaw Companies Limited (TSX: L) (“Loblaw”) and Brookfield Business Partners L.P. (NYSE: BBU)(TSX: BBU.UN) (“Brookfield Business Partners”) announced today that they have closed the previously announced acquisition whereby Brookfield Business Partners, and its institutional partners, will acquire Loblaw’s gas station operations for a purchase price of approximately C$540 million.
The acquired gas station network is one of the largest in Canada and includes 213 retail gas stations and associated convenience kiosks adjacent to Loblaw-owned grocery stores across the country. The gas stations will be rebranded as Mobil as part of an agreement with Imperial Oil, marking the introduction of the Mobil fuel brand into Canada. The rebranding is expected to commence by early fall. The gas stations will continue to allow customers to collect PC® points through Loblaw’s PC Plus® loyalty program and by using PC Financial® products.
About Loblaw Companies Limited (TSX: L)
Loblaw Companies Limited is Canada’s food and pharmacy leader, the nation’s largest retailer, and the majority unitholder of Choice Properties Real Estate Investment Trust. Loblaw provides Canadians with grocery, pharmacy, health and beauty, apparel, general merchandise, banking, and wireless mobile products and services. Through the PC Plus® loyalty program, millions of Canadians are rewarded for shopping at Loblaw’s grocery stores and gas station network.
With more than 2,300 corporate, franchised and Associate-owned locations, Loblaw, its franchisees, and Associate owners employ approximately 195,000 full- and part-time employees, making it one of Canada’s largest private sector employers.
About Brookfield Business Partners LP (NYSE: BBU; TSX: BBU.UN)
Brookfield Business Partners is a business services and industrial company focused on owning and operating high-quality businesses that benefit from barriers to entry and/or low production costs. Brookfield Business Partners is listed on the New York and Toronto stock exchanges. Further information is available at http://bbu.brookfield.com. Important information may be disseminated exclusively via the website; investors should consult the site to access this information.
Brookfield Business Partners is the flagship listed business services and industrials company of Brookfield Asset Management, a leading global alternative asset manager with approximately $250 billion of assets under management. For more information, go to www.brookfield.com.
Media: Loblaw: Loblaw Public Relations, email@example.com; Brookfield: Claire Holland, Tel: (416) 369-8236, firstname.lastname@example.org; Investors: Loblaw: Roy MacDonald, 905-861-2243, email@example.com; Brookfield: Courtney Jardine, Tel: (416) 369-2629, firstname.lastname@example.org
Photo courtesy of Reuters/Chris Wattie