Superior Plus Corp. completed its previously announced acquisition of Certarus Ltd. Certarus is an industry leader in delivering low carbon energy solutions, including compressed natural gas (CNG), renewable natural gas (RNG) and hydrogen, to customers safely and cost effectively through their platform of mobile storage units (MSUs).
Certarus expands Superior’s low-carbon energy offering to include CNG, RNG and hydrogen while tapping into an emerging multibillion-dollar addressable customer base. With the ability to effectively go to market together, the combination will accelerate value creation via new organic growth and expansion opportunities.
“The combination of these two energy distribution platforms creates one of the most resilient and innovative companies in this industry,” said Allan MacDonald, Superior’s president and CEO. “The Certarus acquisition is a highly strategic transaction that adds an established, innovative and profitable player in the rapidly growing low-carbon energy distribution industry. Certarus immediately contributes significant free cash flow, which can be used to continue to fund incremental growth opportunities in this attractive segment. We are thrilled to be partnering with Curtis Philippon and the entire Certarus team in maximizing the full potential of this new organization, sharing best practices of both companies.”
“We are excited to be joining the Superior team,” said Curtis Philippon, Certarus’ president. “Certarus will benefit from Superior’s distribution platform and a shared commitment to safety. The joining of our businesses creates a strong foundation upon which we can continue to grow and provide our customers more environmentally friendly and cost-effective energy solutions to help meet their decarbonization goals.”
Transaction Strategic Highlights
Addition of Established Low Carbon Energy Business: Adds an industry leader in the high growth, low carbon energy distribution industry through CNG, RNG and hydrogen, distributing energy safely and cost effectively to customers
- Business and core values are complementary to Superior’s existing propane distribution platform, providing expansion and diversification opportunities, while focusing on safety, customer service and reliability of supply
- Track record of per share value creation through organically deploying invested capital at high returns
Substantial Organic Growth Opportunities: Provides entry into rapidly expanding, multibillion-dollar low carbon energy distribution industry for CNG, RNG and hydrogen, with opportunity to continue organically deploying capital at high returns
- Certarus expects significant opportunities to continue their growth trajectory by serving customers seeking to lower their carbon footprint, meet sustainability goals and drive cost savings relative to diesel and other distillates
Creates Significant Immediate and Future Value: Delivers compelling value creation with attractive financial returns and enhanced flexibility to act on future organic growth opportunities
- Immediately increases free cash flow Long runway of organic growth opportunities expected to drive value on a per share basis
Provides Sustainable Alternatives: Additional lower carbon energy alternatives for customers looking to reduce carbon emissions and meet sustainability goals
View the full release here: https://www.businesswire.com/news/home/20230530005693/en/
