Creating Value in All Our Businesses
Superior Plus operates two separate businesses: Energy Distribution and Specialty Chemicals. Each of these businesses is in a mature industry with high barriers to entry and substantial free cash flow potential. Each is led by a strong and experienced management team focused on excellent customer service and generating strong and growing cash flows.
In the last five years, Superior Plus management has worked hard to implement competitive cost structures in their businesses, leading to reduced leverage and higher margins.
Distribution and retail marketing of propane products, distribution of liquid fuels including heating oil and propane gas, and wholesale liquids marketing services.
There are three distinct Energy Distribution divisions:
1. The Canadian retail propane distribution and related services business operates under the trade name “Superior Propane”. Superior Propane began operations in 1951 and is engaged primarily in the distribution and retail sales of propane, propane-consuming equipment and related services in Canada. Services include:
- the rental of tanks, cylinders and other equipment
- the supply, installation and repair of equipment
- warranty and preventative maintenance programs for installed equipment.
2. US Propane distributes propane gas and liquid fuels like heating oil along the Eastern Seaboard and into the Midwest with a concentration in the Northeastern United States. It also installs, maintains and repairs heating oil and propane heating equipment. The NGL Propane, LLC acquisition in 2018 extends its target footprint and provides significant opportunity to increase its presence through the execution of a rollup acquisition strategy given the improved platform and footprint.
3. The Supply Portfolio Management business provides value-added services under the trade name “Superior Gas Liquids”, primarily to Superior Propane and small and medium-sized propane retailers in the United States and Canada. SGL provides transportation, storage, risk management, supply and logistics services to its customers.
The Specialty Chemicals business operates as “ERCO Worldwide”. ERCO has operated for over 100 years and is focused on the production and supply of sodium chlorate and chlor-alkali products.
The Company operates eight production facilities in North America and one in Chile and is the second largest producer of sodium chlorate in North America and worldwide. ERCO’s patented chlorine dioxide generators and related technology have been installed in pulp and paper mills worldwide.
ERCO serves a number of key customer segments including pulp and paper, food, energy, agriculture, water treatment, airport de-icing, fertilizers and specialty chemicals.