Superior Plus Announces Sale of U.S. Wholesale and Retail Distillate Assets

Source Press Release
Company Superior Plus CorpSunoco LP 
Tags Asset Deals, Deals, Refining & Marketing Activities
Date April 03, 2018

Superior Plus Corp. (“Superior”) announced today that Superior Plus Energy Services (“SPES”), a subsidiary of Superior Plus LP, has entered into a definitive agreement with Sunoco LP to sell the wholesale refined fuels business and refined fuel terminal assets located in New York for total cash consideration of US$39.8 million (approximately Cdn. $51.4 million), plus net working capital at closing (the “Transaction”). The Transaction is subject to customary purchase price adjustments, closingconditions and is expected to close in April 2018. Superior also closed on the sale of certain retail distillate assets in Pennsylvania today to another third-party for total cash consideration of approximately US$16.0 million (approximately Cdn $20.7 million).

“The sale of these wholesale and retail distillate assets is consistent with our goal to streamline our product offerings, reduce our heating oil and distillate business exposure and grow our U.S. business by investing in retail propane distribution assets,” stated Luc Desjardins, Superior’s President and CEO. “The proceeds from the sale of these assets allows us to repay debt which can be redrawn to fund acquisitions of retail propane assets consistent with our corporate strategy while maintaining our earnings guidance for 2018.”

The assets to be sold to Sunoco LP are part of SPES’ wholesale refined fuels operations across fivestates in the northeast U.S. and includes three pipeline connected terminals located in New York.

Superior confirms that, assuming completion of these divestitures, its guidance for 2018 of Adjusted Operating Cash Flow per share of $1.65 to $1.95 and Adjusted EBITDA of $295 million to $335 million remains unchanged.

Source: EvaluateEnergy® ©2018 EvaluateEnergy Ltd