Superior Plus Announces Acquisition of Assets of Yankee Propane and Virginia Propane Expanding its Footprint in the Northeast U.S.
TORONTO, ONTARIO--(Marketwired - July 5, 2017) - Superior Plus Corp. (TSX:SPB) ("Superior") is pleased to announce it has entered into an agreement to acquire substantially all of the assets of Yankee Propane Inc. ("Yankee"), a propane distributor serving residential and commercial customers in New York and New Jersey, and Virginia Propane, Inc. ("Virginia"), a propane distributor serving residential and commercial customers in Virginia, for an aggregate purchase price of approximately US $31.5 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 July 2017, subject to the satisfaction of certain customary commercial conditions.
Yankee and Virginia will add approximately 13,000 residential and commercial customers and approximately 7.6 million gallons (29.2 million litres) of retail propane sales to Superior's Energy Distribution operations in the Northeast U.S.
"The acquisition of the assets of Yankee and Virginia, which is expected to be immediately accretive to Superior, will complement our existing propane distribution operations in the Northeast 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. "These are well-run businesses with a strong track record that will expand our operations in New York, and add locations in attractive new markets for Superior in New Jersey and Virginia," said Andy Peyton, President of Superior's U.S. Refined Fuels business.
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
Forward Looking Information
This press release may contain forward-looking statements. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as "anticipate", "believe", "continue", "could", "estimate", "foresee", "grow", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes. Forward looking statements in this press release include the expected closing date of, and accretion from, the Acquisition.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Superior's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks and uncertainties include risks related to the satisfaction of the conditions to closing of the Acquisition and performance of the businesses acquired pursuant to the Acquisition which are similar to the risks of Superior's existing Energy Distribution Business and operation risks related to Superior's other businesses including those identified in the Corporation's 2016 Annual Information Form under the heading "Risk Factors", which is available on the SEDAR website (www.sedar.com). Any forward-looking information is made as of the date hereof and, except as required by law, Superior does not undertake any obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.
Senior Vice President and Chief Financial Officer
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Superior Plus Corp.
Vice President, Investor Relations and Treasurer
Tel: (416) 340-6003 or Toll Free: 1-866-490-PLUS (7587)
(416) 340-6030 (FAX)