ERCO Worldwide acquires chloralkali business in Port Edwards, Wisconsin

TSX: SPF.UN

CALGARY, April 12 /CNW/ - Superior Plus Income Fund (the "Fund") is
pleased to announce that ERCO Worldwide, a division of Superior Plus Inc., has
entered into an agreement to purchase the chloralkali business in Port
Edwards, Wisconsin from Basic Chemicals Company, LLC, an affiliate of
Occidental Chemical Corporation, for U.S. $29.5 million on a debt free basis,
subject to certain adjustments. The transaction is subject to certain closing
conditions, including United States Federal Trade Commission approval, which
is expected to be received by the end of the second quarter. Superior Plus
intends to finance the transaction from available term bank credit facilities.
The acquisition is anticipated to be accretive to unitholders.
The Business is the second largest producer of potassium products in
North America and has a strong competitive position with a track record of
stable cash flow. Approximately 70% of its gross profit is derived from the
production of potassium hydroxide (KOH), used in making agricultural
chemicals, soaps, detergents, de-icing chemicals, and as electrolyte in
alkaline batteries. In addition, it produces potassium carbonate, caustic
soda, chlorine and hydrochloric acid.
In commenting on the acquisition, Paul Timmons, President of ERCO
Worldwide, stated that "This acquisition adds diversification to our business
and is complementary to our Saskatoon chlorine, caustic and hydrochloric acid
operations. The business is expected to be operated by existing management and
its non-union workforce."
Geoffrey N. Mackey, President and CEO of Superior Plus Inc., added: "This
acquisition is accretive to unitholders and further advances ERCO Worldwide's
strategy of increasing its operational efficiencies and exploring other growth
opportunities in North America. In addition, ERCO Worldwide, continues to
pursue growth opportunities in the growing Asian and South American markets."
The Fund holds 100% of Superior Plus Inc., which has four operating
divisions: Superior Propane is Canada's largest distributor of propane,
related products and services; ERCO Worldwide is a leading supplier of
chemicals and technology to the pulp and paper and water treatment industries;
Winroc is the seventh largest distributor of walls and ceilings construction
products in North America; and Superior Energy Management provides natural gas
supply services, predominantly to commercial and industrial markets in
Ontario.
The Fund's trust units trade on the Toronto Stock Exchange (the "TSX")
under the trading symbol SPF.UN. There are 76.9 million trust units
outstanding. The Fund has $11.6 million principal amount of Series 1, and
$86.8 million of Series 2, 8% Convertible Unsecured Subordinated Debentures
outstanding, that trade on the TSX under the trading symbols SPF.DB and
SPF.DB.A, respectively.

Forward Looking Statements: Except for the historical and present factual
information, certain statements contained herein are forward-looking. Such
forward-looking statements are not guarantees of future performance and
involve a number of known and unknown risks and uncertainties which may cause
the actual results of the Fund or Superior Plus Inc. in future periods to
differ materially from any projections expressed or implied by such     
forward-looking statements and therefore should not be unduly relied upon. Any
forward-looking statements are made as of the date hereof and neither the Fund
nor Superior Plus undertakes any obligation to publicly update or revise such
statements to reflect new information, subsequent events or otherwise.