Superior Plus Considering Sale of Specialty Chemicals Business
TORONTO--(BUSINESS WIRE)-- Superior Plus Corp. (“Superior”)(TSX:SPB) today announced it is considering a sale of its Specialty Chemicals business which operates under the trade name ERCO Worldwide (“Specialty Chemicals”). Superior regularly conducts a review of its portfolio of businesses to assess the strategic fit within the overall direction of the company. Given the significant growth opportunities in Superior’s US Energy Distribution business, and the potential benefits of Superior becoming a pure play energy business focused on retail propane distribution, Superior has retained Barclays Capital Canada Inc. (“Barclays”) to assist with a potential sale of its Specialty Chemicals business.
In the event Specialty Chemicals is sold, Superior will evaluate the best use of the net proceeds at the time, but expects such proceeds will be used primarily to reduce debt and to invest in U.S. propane distribution acquisitions. However, depending on a number of factors which will not be determined until closer to the time a transaction, if any, is announced, a portion of such proceeds could also be utilized by Superior to purchase Superior common shares. Assuming completion of a sale, Superior expects the remaining Energy Distribution business would support the existing dividend policy.
“We expect Specialty Chemicals will be highly marketable, attracting strong buyer interest and an attractive valuation. Upon completion of any sale, we anticipate accelerating our US Energy Distribution growth program where we are confident we can deliver significant value as we apply our operating model to the acquired businesses and realize significant synergies. However, Specialty Chemicals is a solid sustainable business with strong cash flows and we are very comfortable continuing to own the business if the process does not result in an acceptable valuation.” said Luc Desjardins, President and CEO.
There can be no assurance that the sale process will result in the completion of any transaction. Superior has not set a timetable for completion of the review process, and it does not intend to comment further unless a specific transaction or alternative is approved by the Board of Directors, the review process is concluded, or it is otherwise determined that disclosure is appropriate.
About the Corporation
Superior consists of two primary operating businesses: Energy Distribution includes the distribution of propane and distillates, and supply portfolio management; and Specialty Chemicals includes the manufacture and sale of specialty chemicals.
For further information about Superior, please visit our website at: www.superiorplus.com or contact: Beth Summers, Executive Vice President and Chief Financial Officer, Tel: (416) 340-6015, or Rob Dorran, Vice President, Investor Relations and Treasurer, Tel: (416) 340-6003, E-mail: email@example.com, Toll Free: 1-866-490-PLUS (7587).
Forward Looking Information
This news release contains certain forward-looking information and statements that are based on Superior’s current expectations, estimates, projections and assumptions in light of its experience and its perception of historical trends. In this news release, such forward-looking information and statements can be identified by terminology such as "to be", "expects", "annualized", and similar expressions.
In particular, this news release contains forward-looking statements and information relating to the marketability of, expected buyer interest in and potential valuation of the Specialty Chemicals business and the expected use of proceeds if a sale transaction was completed and the impact of a transaction on Superior’s current dividend level. These forward-looking statements are being made by Superior based on certain assumptions that Superior has made in respect thereof as at the date of this news release, regarding, among other things: the success of Superior’s operations; prevailing commodity prices, current economic conditions, margins, volumes and exchange rates; that Superior’s future results of operations will be consistent with past performance and management expectations in relation thereto; the continued availability of capital at attractive prices to fund future capital requirements; future operating costs and growth potential of the US energy distribution business. These forward-looking statements are not guarantees of future performance and are subject to a number of known and unknown risks and uncertainties detailed from time to time in Superior’s public disclosure documents including, among other things, those detailed under the heading "Risk Factors" in Superior’s management's discussion and analysis and annual information form for the year ended December 31, 2018, which can be found at www.sedar.com .
Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted, forecasted or projected. Such forward-looking statements are expressly qualified by the above statements. Superior does not undertake any obligation to publicly update or revise any forward-looking statements or information contained herein, except as required by applicable laws.
Beth Summers, Executive Vice President and Chief Financial Officer
Tel: (416) 340-6015
Rob Dorran, Vice President, Investor Relations and Treasurer
Tel: (416) 340-6003
Toll Free: 1-866-490-PLUS (7587)