Pellerano & Herrera assisted in US$1.2 billion acquisition in fuel industry

The law firm assisted Parkland Fuel Corp. in the acquisition of 75% of the shares of Sol Investment Limited.

Pellerano & Herrera assisted Parkland Fuel Corporation, one of North America's fastest growing independent marketers of fuel and petroleum products, in the acquisition of 75% of Sol Investment Limited’s shares, an owner of Esso gas stations in the Dominican Republic, for global amount of  US$1.21 billion. Sol is the largest oil company in the Caribbean, operating in 23 countries.

Pellerano & Herrera served as counsel in the acquisition and acquisition finance. The legal team was led by partner Carolina León, special counsel Isabel Andrickson and senior associate Caroline Bonó. The firm’s work included complex corporate, tax, labour, real estate and environmental advice.

The deal gives Parkland access to SOL’s 526 retail gas stations and increases its total annual fuel volume to more than 21 billion liters. It also gives the company a strong foothold in the Caribbean oil market.

Upon closing of the deal, SOL’s parent company Simpson Group will own a stake of about 10% in Parkland. Parkland will also have the option to buy the remaining 25% stake in the future at a pre-determined price.

The transaction was financed by Parkland through debt financing of around C$1.1 billion underwritten by Canadian Imperial Bank of Commerce and National Bank of Canada.

Torys LLP served as Canadian counsel and Walkers served as Cayman counsel to Parkland Fuel Corporation. Mourant Ozannes acted as Cayman counsel to Sol.

Pellerano & Herrera has been the leading law firm in the Dominican Republic for more than 30 years and has participated in the largest and most important cases and transactions in the country. The firm has the most complete and multidisciplinary team of lawyers, with vast experience in more areas of practice than any other firm in the country. Pellerano & Herrera is the exclusive member firm in the Dominican Republic for Lex Mundi – the world’s leading network of independent law firms with in-depth experience in 100+ countries worldwide.