TORONTO — Superior Plus Corp. announced it has closed the previously announced acquisition of the retail propane and refined fuels distribution assets of Quarles Petroleum Inc. The US$144 million purchase price (before working capital adjustments) was paid with funds drawn from Superior’s existing credit facility.
Founded in 1940, the Quarles Delivered Fuels Business is an established retail propane distributor servicing approximately 55,000 residential and commercial customers primarily in Virginia. Quarles has 29 propane bulk plants, one rail terminal, approximately 3 million gallons of storage capacity, a fleet of 196 vehicles and 188 employees.
On a normalized basis, including the achievement of expected synergies and weather consistent with the five-year average, Superior expects Quarles to generate approximately US$19 million (CA$24 million) in Adjusted EBITDA on an annual run-rate basis 24 months following the close of the acquisition.
"I am excited to welcome the Quarles employees and customers to the Superior family,” said Luc Desjardins, Superior’s president and CEO. “We’re looking forward to adding to our existing service offering in Virginia and growing our business in this attractive market.”