TORONTO--(BUSINESS WIRE)--Superior Plus Corp. (“Superior”) is pleased to announce it has entered into an agreement to acquire all of the issued and outstanding shares of United Liquid Gas Company, which operates under the trade name United Pacific Energy (“UPE”) an independent wholesale propane and butane distributor in California (the “Acquisition”). The Acquisition will be funded by drawing on Superior’s existing credit facility and is anticipated to close early in the fourth quarter, subject to the satisfaction of certain customary closing conditions.
UPE is a well-established independent wholesale propane and butane distributor with operations in California. UPE operates four rail terminals with approximately 9.8 million litres of natural gas liquid storage capacity; serving over 115 wholesale customers, which include retail propane distribution companies, primarily in the California market.
“The acquisition of UPE is consistent with our Evolution 2020 objective to expand the wholesale propane business through opportunistic acquisitions across North America and demonstrates our commitment to further expand our wholesale propane marketing presence in the U.S.,” said Luc Desjardins, Superior’s President and CEO. “The acquisition of UPE is our fifth acquisition in 2018 and fourth tuck-in acquisition.”
“UPE is a well-run business with over 20 years serving propane customers in the California marketplace” said Shawn Vammen, Senior Vice President of Superior’s Supply Portfolio Management business. “This acquisition adds significant volume to our portfolio, diversifies our customer and geographical base and includes an attractive group of assets with coastal presence that is integral in our continued expansion of the wholesale business along the western coast of the U.S.”
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: firstname.lastname@example.org, Toll Free: 1-866-490-PLUS (7587).
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 and timing of the closing of 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 2017 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.