Superior Plus Announces Acquisition of the Propane Distribution Assets of R.W. Earhart Expanding its Propane Distribution Business in the U.S.

Source Press Release
Company Superior Plus Corp 
Tags Asset Deals, Deals, Refining & Marketing Activities
Date September 18, 2017

Superior Plus Corp. ("Superior") (TSX:SPB) is pleased to announce it has entered into an agreement to  acquire substantially all of the propane distribution assets of the R.W. Earhart Company ("Earhart"), one of the largest independent propane distributors in Ohio serving residential and commercial customers for an aggregate  purchase price of approximately US $38.0 million (the "Acquisition"), subject to certain adjustments. The purchase price will be funded by drawing on Superior's existing credit facility. The  Acquisition is anticipated to close during the fourth quarter of 2017, subject to the satisfaction of certain customary commercial conditions.

Earhart is a well-established, leading independent propane marketer within the state of Ohio. The company is anticipated to add approximately 12,600 residential and commercial customers and 12.5 million gallons (47.3 million litres) of retail propane sales to Superior's Energy Distribution operations in the U.S.

"The acquisition of the propane distribution assets of Earhart will expand our existing propane distribution operations in the U.S. and demonstrates our commitment to grow the Energy Distribution business through the application of Superior's innovative, industry leading technology and services to propane companies  acquired in Canada and the U.S.," said Luc Desjardins, Superior's President and CEO. "The Earhart  acquisition is our fourth  acquisition of 2017, which is at the high end of our  Evolution 2020 target, and we have more opportunities available to grow both our Energy and Chemicals business through tuck-ins.""

Earhart Propane is a well-run business with a strong track record that will expand our operations into attractive new markets for Superior" said Andy Peyton, President of Superior's U.S. Refined Fuels business. "This platform includes a strong commercial propane business as well as a growing base of residential customers."

Source: EvaluateEnergy® ©2018 EvaluateEnergy Ltd