TORONTO — Superior Plus Corp. announced that it has completed the previously announced acquisition of the equity interests of Kamps Propane Inc., High Country Propane Inc., Pick Up Propane Inc., Competitive Capital Inc. and Propane Construction and Meter Services (collectively, Kamps Propane) and Kiva Energy Inc. (Kiva Energy) for a purchase price of approximately US$240 million (CDN $302 million). The purchase price was paid with funds drawn from Superior’s existing credit facility.
“We are pleased to complete this acquisition as it provides us with a substantial retail propane distribution platform on the west coast of the United States in addition to providing anticipated annual run-rate synergies of approximately US$7 million after 24 months,” said Luc Desjardins, president and CEO of Superior.
Andy Peyton, president of Superior’s U.S. propane distribution business added, “I am excited to welcome Kamps Propane, its people and its customers to the Superior Plus Propane family. The acquisition of Kamps Propane creates a strong platform for us in California to further expand our service in an attractive region.”
“I am excited to welcome the Kiva Energy employees and customers to the Superior Plus family,” said Shawn Vammen, senior vice president of Superior’s Supply Portfolio Management business. “We’re looking forward to servicing Kiva’s wholesale customers, and achieving anticipated cost savings through our expanded wholesale platform in the western region of the U.S.”
Overview of Kamps Propane and Kiva Energy:
- Over 45,000 residential, commercial and wholesale customers
- Approximately 280 employees in 14 retail branches and five company-operated rail terminal locations
- A fleet in excess of 375 vehicles servicing 16 states in the Western U.S.
- Adjusted EBITDA of approximately US $27 million (CDN $34 million)