Business
ERCO Worldwide closes acquisition of chloralkali business in Port Edwards, Wisconsin
ERCO Worldwide closes acquisition of chloralkali business in Port Edwards, Wisconsin.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\n\nTSX: SPF.UN\n\nCALGARY, June 7 /CNW/ - Superior Plus Income Fund (the \"Fund\") announced\ntoday that ERCO Worldwide, a division of Superior Plus Inc., has successfully\nclosed the acquisition of the chloralkali business in Port Edwards, Wisconsin\nfrom Basic Chemicals Company, LLC, an affiliate of Occidental Chemical\nCorporation, for approximately U.S. $29.5 million on a debt free basis,\nsubject to certain adjustments. The acquisition was previously announced on\nApril 12, 2005.\nAs previously reported, the Business is the second largest producer of\npotassium products in North America and has a strong competitive position with\na track record of stable cash flow. Approximately 70% of its gross profit is\nderived from the production of potassium hydroxide (KOH) and potassium\ncarbonate, used in various end-use applications including making agricultural\nchemicals, soaps, detergents, de-icing chemicals, and as electrolyte in\nalkaline batteries. In addition, it produces caustic soda, chlorine and\nhydrochloric acid, which are also produced at ERCO Worldwide's Saskatoon\nplant.\nIn commenting on the acquisition, Geoffrey N. Mackey, President and CEO\nof Superior Plus Inc., stated that: \"The acquisition is expected to be\naccretive to the Fund's distributions per trust unit. It is an important step\ntowards expanding and diversifying ERCO Worldwide's operations and product\nline in North America. In addition, ERCO Worldwide continues to focus on\nincreasing its operational efficiencies and pursuing other opportunities in\nthe growing Asian and South American markets.\"\n\nThe Fund holds 100% of Superior Plus Inc., which has four operating\ndivisions: Superior Propane is Canada's largest distributor of propane,\nrelated products and services; ERCO Worldwide is a leading supplier of\nchemicals and technology to the pulp and paper and water treatment industries;\nWinroc is the seventh largest distributor of walls and ceilings construction\nproducts in North America; and Superior Energy Management provides fixed price\nnatural gas supply services in Ontario and Quebec.\nThe Fund's trust units trade on the Toronto Stock Exchange (the \"TSX\")\nunder the trading symbol SPF.UN. There are 77.9 million trust units\noutstanding. The Fund has $10.4 million principal amount of Series 1, and\n$66.9 million of Series 2, 8% Converti...