Wednesday, July 29, 2020
Superior Plus Corp. (Toronto) has entered into an asset agreement to acquire a retail propane distribution company, operating under the tradename, Champagne’s Energy.
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,” said Luc Desjardins, Superior’s president and CEO. “Champagne is a well-run, customer-focused business and we look forward to welcoming the team to Superior. 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.
SOURCE: The Weekly Propane Newsletter, July 30, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
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,” said Luc Desjardins, Superior’s president and CEO. “Champagne is a well-run, customer-focused business and we look forward to welcoming the team to Superior. 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.
SOURCE: The Weekly Propane Newsletter, July 30, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
