Thursday, March 9, 2017
(March 9, 2017) Superior Plus Corp. (Toronto) has entered into an agreement with Gibson Energy Inc. (Calgary) to acquire its retail propane business, Canwest Propane, in a transaction valued at $412 million. e acquisition is expected to be completed by the second half of this year. e acquisition is seen as significantly enhancing Superior Plus Corp.’s energy distribution business while positioning it for oil eld activity recovery and improved demand in Western Canada.
Superior Plus has entered into an option purchase agreement to acquire all of the shares and units of the Gibson Energy entities that operate the retail propane business of Canwest. The company was founded in 1987 and is a leading propane supply and distribution franchise in Western Canada. It serves a diverse customer base of oil and gas, commercial and industrial, residential and construction under the brands Canwest and Stittco. Canwest has more than 50,000 customers.
Superior will assume an asset base of more than 60 locations in six provinces and territories with average propane sales volumes of about 470 million liters over the past two years. “ is transaction is a strong strategic fit on all fronts, including operations, culture, employees, and management,” said Luc Desjardins, president and CEO of Superior Plus. “It will allow us to more efficiently supply propane to customers in Western Canada. Canwest enhances Superior’s energy distribution business and allows for a better business position in Western Canada.”
Gibson Energy will continue to operate the business under the direction of the current management team, with no disruption to its employees or customers until the final closing of the divestiture, which is expected to occur no later than the fourth quarter of 2017. As part of the sale, Superior has agreed to five-year wholesale supply and truck transportation agreements that offers Gibson the ability to continue procuring propane volumes for Canwest and Stittco and provide bulk delivery rights to the associated branch distribution locations.
Superior Plus has entered into an option purchase agreement to acquire all of the shares and units of the Gibson Energy entities that operate the retail propane business of Canwest. The company was founded in 1987 and is a leading propane supply and distribution franchise in Western Canada. It serves a diverse customer base of oil and gas, commercial and industrial, residential and construction under the brands Canwest and Stittco. Canwest has more than 50,000 customers.
Superior will assume an asset base of more than 60 locations in six provinces and territories with average propane sales volumes of about 470 million liters over the past two years. “ is transaction is a strong strategic fit on all fronts, including operations, culture, employees, and management,” said Luc Desjardins, president and CEO of Superior Plus. “It will allow us to more efficiently supply propane to customers in Western Canada. Canwest enhances Superior’s energy distribution business and allows for a better business position in Western Canada.”
Gibson Energy will continue to operate the business under the direction of the current management team, with no disruption to its employees or customers until the final closing of the divestiture, which is expected to occur no later than the fourth quarter of 2017. As part of the sale, Superior has agreed to five-year wholesale supply and truck transportation agreements that offers Gibson the ability to continue procuring propane volumes for Canwest and Stittco and provide bulk delivery rights to the associated branch distribution locations.
