Business
Superior Plus announces a US $125 million acquisition expanding its US Refined Fuels business, preliminary unaudited 2009 year end results and an updated 2010 outlook
Superior Plus announces a US $125 million acquisition expanding its US Refined Fuels business, pr...
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nJan. 20, 2010 (Canada NewsWire Group) -- CALGARY, Jan. 20 /CNW/ -- Superior Plus Corp. (\"Superior\") is pleased to announce that one of its wholly-owned subsidiaries has entered into a Stock Purchase Agreement to acquire \"Griffith Holdings, Inc.\" (the \"Company\"), a retail and wholesale distributor of retail propane, heating oil and motor fuels in upstate New York for an aggregate purchase price of US$125 million before adjustments for working capital. Closing of the acquisition is subject to customary regulatory and commercial closing conditions and is anticipated to be completed by end of day, January 20, 2010.For the 12 months ended June 2009, the Company delivered approximately 294.4 million gallons of product to customers within New York state; gross profits were 42% from propane sales, 13% from heating oil, 23% from other fuels, 18% from wholesale activities and 4% from service work. The customer profile of the Company, based on gallons of product sold, is approximately 29% retail and 71% wholesale and dealer related. The Company supports its retail fuel distribution business by providing heating related service work to its propane and heating oil customers.The Company has 27 branch locations, 26 bulk storage facilities and 3 storage terminals, providing 20 million gallons of storage capacity. It has a well-maintained fleet of approximately 400 delivery and service vehicles and employs approximately 500 non-union employees. The Company's business is complementary to Superior's other operations in New York state.The Company has an experienced management team which has demonstrated an ability to profitably grow the business both organically and through acquisitions, successfully completing 17 acquisitions since 2000. Superior intends to integrate the Company's management team with Superior's refined fuels business management team.Grant Billing, Chairman and Chief Executive Officer of Superior, stated that, \"We are very pleased to continue to expand our refined fuel distribution and energy services business in the north-eastern United States as part of Superior's growth strategy. The Company's operations in upstate New York are an excellent strategic fit and are complementary to Superior's Canadian propane distribution business, the Sunoco assets purchased on September 30, 2009 and the Griffith Energy Services as...