Superior closes purchase of Kamps Propane, Kiva Energy stakes

Superior Plus Corp has completed its acquisition of equity interests in Kamps Propane and Kiva Energy for about $240 million (C$302 million). The Toronto-based energy distribution company said the purchase provides it with a substantial retail propane distribution platform on the west coast of the US. Superior Plus in 2020 secured a $260 million investment from Brookfield Asset Management.

PRESS RELEASE

TORONTO–(BUSINESS WIRE)–Superior Plus Corp. (“Superior”) (TSX:SPB) announced today that it has completed the previously announced acquisition of the equity interests of Kamps Propane, Inc., High Country Propane, Inc., Pick Up Propane, Inc., Competitive Capital, Inc. and Propane Construction and Meter Services (collectively, “Kamps Propane”) and Kiva Energy, Inc. (“Kiva Energy”) for a purchase price of approximately US$240 million (CDN $302 million) (the “Transaction”). The purchase price was paid with funds drawn from Superior’s existing credit facility.

“We are pleased to complete this acquisition as it provides us with a substantial retail propane distribution platform on the west coast of the U.S. in addition to providing anticipated annual run-rate synergies of approximately US $7 million after 24 months,” said Luc Desjardins, President and Chief Executive Officer of Superior.

Andy Peyton, President of Superior’s U.S. propane distribution business added, “I am excited to welcome Kamps Propane, its people and its customers to the Superior Plus Propane family. The acquisition of Kamps Propane creates a strong platform for us in California to further expand our service in an attractive region.”

“I am excited to welcome the Kiva Energy employees and customers to the Superior Plus family,” said Shawn Vammen, Senior Vice President of Superior’s Supply Portfolio Management business. “We’re looking forward to servicing Kiva’s wholesale customers, and achieving anticipated cost savings through our expanded wholesale platform in the western region of the U.S.”

Overview of Kamps Propane and Kiva Energy:
Over 45,000 residential, commercial and wholesale customers;
Approximately 280 employees in 14 retail branches and 5 company-operated rail terminal locations;
A fleet in excess of 375 vehicles servicing 16 states in the Western U.S.;
Adjusted EBITDA of approximately US $27 million (CDN $34 million)1
On a normalized basis, including the achievement of expected synergies and weather consistent with the five-year average, Superior expects Kamps Propane and Kiva Energy to generate approximately US $34 million (CDN $42 million) in Adjusted EBITDA on a run-rate basis in the next 24 months.

Based on Fiscal Year 2021 Adjusted EBITDA of Kamps Propane and Kiva Energy. See “Non-GAAP Financial Measures”.

About the Corporation
Superior is a leading North American distributor and marketer of propane and distillates and related products and services, servicing approximately 890,000 customer locations in the U.S. and Canada.