Parkland Expands Grocery Offerings And Accelerates Convenience Store Growth With Acquisition Of M&M Food Market

Calgary, AB /PRNewswire-HISPANIC PR WIRE/ - Parkland Corporation ("Parkland", "we", the "Company", or "our") (TSX: PKI), one of the leading operators and consolidators of convenience stores and fuel stations, today announced the signing of an agreement to acquire M&M Food Market ("M&M") ("the Acquisition"). M&M is a premium restaurant-quality frozen food retailer, providing high-quality, convenient food options to Canadians. This acquisition represents one of many steps we are taking in our retail diversification strategy to expand our own food offerings,

"This acquisition provides a platform to expand our food offerings, support the growth of our own brands and advance our loyalty and digital strategy," said Ian White ., Executive Vice President of Strategic Marketing and Innovation. "In keeping with our commitment to creating convenience destinations, M&M's nationwide network of stores, an innovative approach to food preparation and menu development position us to offer high-quality foods that complement our growing service restaurant offerings." We will grow these capabilities across all of our operating regions and strengthen our digital connection with customers by combining the M&M and JOURNIE™ rewards programs. We look forward to bringing ON the RUN and M&M together to help customers make the most of every stop."

The acquisition includes more than 300 well-located independent franchise and corporate-owned stores, more than 2,000 M&M Express locations and a well-established rewards program with approximately two million active members. Led by an experienced management team with a proven track record of growth and a food-first culture, M&M will create quality food options that our customers can eat fresh from the freezer, both on-premises and to-go, and prepared at home from frozen. We will leverage these capabilities across our existing network and soon to launch standalone ON the RUN convenience stores .

"Parkland's ON the RUN brand is a leader in convenience store retailing and we're excited to combine our two offerings," said Andy O'Brien , CEO of M&M. "M&M and its franchise partners share Parkland's customer focus and passion for quality foods. The combination of our innovative food offering capabilities and Parkland's more than 3,000 retail stores in 25 countries creates a platform immediate opportunity for growth and expansion.

This acquisition enhances the key elements of our strategy:

• Drives Our Food Business Strategy – Incorporates a proprietary brand, experienced team, franchise network and scalable growth platform for fresh and fresh from frozen foods across all of our markets. We will leverage M&M's experience and track record of developing successful menus in its innovation kitchen to evaluate and develop additional fresh and quick-service food options throughout our network.
• Promotes our digital strategy and builds a premier Canadian loyalty program : By combining the rewards programs of JOURNIE ™ and M&M, which have two million active members, we will create extensive cross-promotional opportunities and consolidate one of the leading loyalty programs from Canada.
• Enhances our ON the RUN customer value proposition : M&M will be an integral part of our growing ON the RUN network , strengthening our in-store sales, e-commerce and delivery offerings, and supporting our convenience store concept independent.
• Light on capital: M&M leverages a well-established and highly efficient food preparation and distribution network, which requires limited capital investment to efficiently serve its retail stores.
• Taxable Cash Flow with Significant Growth Potential: M&M's royalty-based operating model creates proportionate cash flow. Our goal is to increase M&M's Canadian run-rate adjusted annual EBITDA to approximately $55 million over three years.

The total consideration for this transaction is approximately US$322 million, which will be financed from the capacity of the existing line of credit. This acquisition represents a valuation measure of less than 8.5 times projected 2021 Adjusted EBITDA. Subject to approval under the Competition Act (Canada) and other customary closing conditions, the transaction is expected to close in the first quarter of 2022.

Acquisition Conference Call and Webcast Information
Parkland will hold a webcast and conference call on Thursday, January 18 at 4:00 p.m. m. MDT (6:00 PM EDT) to discuss the acquisition. To listen to the live webcast and view the presentation, use the following link: https://produceredition.webcasts.com/starthere.jsp?ei=1524874&tp_key=388fcb2af7

Analysts and institutional investors interested in participating in the Q&A session of the conference call can do so by calling 1-888-390-0546 (toll-free) (Conference ID: 68511332). International participants may call 1-800-389-0704 (toll) (conference ID: 68511332).

Go online and log in approximately 10 minutes before the start of the call. The recording of the webcast will be available two hours after the conference call ends at the link above. It will be available for one year and will also be posted on www.parkland.ca

About Parkland Corporation
Parkland's purpose is to power travel and energize communities. We are a leading retail convenience store and fuel station operator and consolidator. Through our portfolio of trusted, locally relevant retail, commercial and wholesale convenience store brands, we serve more than one million customers a day in Canada, the United States, the Caribbean region, and Central and South America. In addition to leveraging our supply and storage capabilities to provide the essential fuels our diverse customers rely on,

Parkland's proven strategy focuses on organic growth, achieving a supply advantage, prudent acquisitions and successful integration. We are positioned to win through the energy transition and are focused on building our existing business in resilient markets, further diversifying our retail business into convenience stores, food and electric vehicle charging, as well as helping our customers businesses to decarbonize their operations. Our strategy is enabled and supported by our people, as well as our values ​​of safety, integrity, community and respect, which are deeply embedded in our organization.

Acerca de M&M Food Market
Fundada en 1980, M&M Food Marketis Canada's leading frozen food retail chain and has helped Canadians put delicious foods on the table by offering consumers carefully prepared products that use authentic recipes and high-quality ingredients along with outstanding customer service. personalized, all within an exceptionally convenient shopping environment. Following the start of a major rebranding effort in 2016, which included a name change to M&M Meat Shops, a new store layout, new products and packaging, a new website and newly trained food consultants, M&M Food Market has focused on innovation in virtually every aspect of the business. It is headquartered in Mississauga, Ontario, with locations in all ten provinces, Yukon and the Northwest Territories. M&M has been recognized as one of Canada's Best Managed Companies for 11 consecutive years. M&M products include delicious and convenient options in virtually every food category, including appetizers, prepared meals, seafood, meat and poultry, vegetables, sides, bakery and desserts, and come in formats ranging from single servings to family size options.

Forward-looking statements
Certain statements contained in this press release constitute forward-looking information and statements (collectively, "forward-looking statements"). The use in this press release of the words "expects", "will", "could", "would", "believes", "continues", "seeks" and similar expressions is intended to identify forward-looking statements. In particular, this press release contains forward-looking statements regarding, among other things, the successful completion of the acquisition and its timing; expected benefits of the acquisition, including the following: potential organic growth, creation of convenience destinations, the RUN.

These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. No guarantee can be given that these expectations are correct. Any forward-looking statements contained in this press release should not be unduly relied upon. These forward-looking statements speak only as of the date of this press release. Parkland undertakes no obligation to publicly update or revise any forward-looking statement, except as required by securities law. Actual results could differ materially from those anticipated in these forward-looking statements as a result of numerous risks and uncertainties, including, but not limited to, the following: not completing this acquisition; failure to meet the conditions for closing the acquisition; the inability to realize all or any of the anticipated benefits of the acquisition; general economic, market and business conditions; the competitive measures of other companies; the ability of suppliers to meet their commitments; actions taken by government authorities and other regulators, including, but not limited to, tax increases or restricted access to markets; changes and developments in environmental regulations and other types; and other factors, many of which are beyond Parkland's control. See also the risks and uncertainties described in "Forward Looking Information" and "Risk Factors"www.parkland.ca.