Brookfield-backed Superior Plus to acquire Certarus for C$1.05bn

Earlier this year, Brookfield anchored the Superior Plus' C$288 million offering, investing about C$75 million.

  • The acquisition is being funded through the issuance of Superior shares to the shareholders of Certarus and expanded long-term credit facilities
  • The deal will add complementary, high-growth, low-carbon fuels, including compressed natural gas, renewable natural gas and hydrogen to Superior’s distribution platform
  • Investors in Certarus include Longbow Capital

Superior Plus, a Toronto-based distributor and marketer of propane and distillates, has acquired Certarus, a Calgary-based provider of low-carbon energy solutions. The deal, expected to close in the first quarter of 2023, is valued at C$1.05 billion, including debt.

The acquisition is being funded through the issuance of Superior common shares to the shareholders of Certarus and expanded long-term credit facilities, providing increased liquidity to continue to grow the combined company.

Investors in Certarus include Longbow Capital, a Canadian private equity firm focused on investing in energy, power and technology sectors.

Once closed, the deal will add complementary, high-growth, low-carbon fuels, including compressed natural gas, renewable natural gas and hydrogen to Superior’s distribution platform, the company said.

“The acquisition of Certarus is a highly strategic and transformative transaction for Superior as it represents an exciting opportunity for significant organic growth and provides our existing and new customers with the ability to meet their ESG goals through our low carbon energy distribution platform,” said Luc Desjardins, Superior’s President and CEO, in a statement. “With our execution on the Superior Way Forward strategic initiatives in the past 24 months, we are ahead of our timing to achieve $700 million to $750 million in EBITDA from operations3 as we now expect to reach the lower end of the target by 2024.”

Superior Plus is backed by Brookfield Asset Management. Earlier this year, Brookfield anchored the company’s C$288 million offering, investing about C$75 million.

CIBC Capital Markets is acting as financial advisor to Superior, while Torys is acting as Canadian legal counsel. JP Morgan and National Bank Financial are acting as financial advisors to Certarus, while TD Securities is acting as strategic advisor to Certarus. And Burnet, Duckworth & Palmer is acting as legal counsel to Certarus.