Superior Plus Corp has agreed to acquire Champagne’s Energy, an Arundel, Maine-based retail propane distribution company. No financial terms were disclosed. Superior Plus, a Toronto-based energy distribution and specialty chemicals business, earlier this year secured a US$260 million (C$350 million) investment from Brookfield Asset Management.
TORONTO–(BUSINESS WIRE)–Superior Plus Corp. (“Superior”) (TSX:SPB) is pleased to announce it has entered into an asset agreement to acquire a retail propane distribution company, operating under the tradename, Champagne’s Energy (“Champagne”).
Founded in 1981, Champagne is an established independent retail propane distributor delivering approximately 11 million gallons of propane and distillates annually to retail and commercial customers in Maine.
“The acquisition of Champagne is Superior’s second tuck-in acquisition in 2020 and scales our existing footprint in Maine. Champagne is a well-run, customer-focused business and we look forward to welcoming the team to Superior,” said Luc Desjardins, Superior’s President and CEO. “The preferred share investment from Brookfield Asset Management Inc. has improved our financial strength and enhanced our liquidity, enabling us to accelerate our retail propane acquisition strategy.”
Pro forma the acquisition, Superior expects a modest increase in annual run-rate EBITDA from operations for its U.S. propane distribution segment. The transaction is expected to close in the third quarter of 2020 and is subject to customary closing conditions.
About the Corporation
Superior consists of three primary operating businesses: Canadian Propane Distribution and U.S. Propane Distribution, which include the distribution of propane and distillates, and supply portfolio management; and Specialty Chemicals, which includes the production and sale of specialty chemicals.