Business
Superior Plus Announces Expansion of its Construction Products Distribution Business with a US$135 Million Acquisition
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About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\n/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR\nDISSEMINATION IN THE UNITED STATES/\n\nTSX: SPB\n\n\nCALGARY, Aug. 6 /CNW/ - Superior Plus Corp. ("Superior") is pleased to\nannounce that it has entered into a definitive agreement to acquire Specialty\nProducts & Insulation Co. ("SPI") for an aggregate purchase price of US$135\nmillion. Closing of the acquisition is subject to customary regulatory and\ncommercial closing conditions, including the approval of the Toronto Stock\nExchange, and is anticipated to be completed in September 2009. The\nacquisition is expected to be completed by way of a plan of merger under\nPennsylvania law involving Superior, newly created subsidiaries of Superior\nand SPI.\n\n\nHeadquartered in East Petersburg, Pennsylvania, SPI is a leading US\nnational distributor of a comprehensive selection of insulation and\narchitectural named brand products focused on the commercial and industrial\nmarkets. SPI has a distribution network with a leading market position in 28\nstates and operates 70 distribution centers including 11 fabrication\nfacilities. SPI has a diversified US customer base of approximately 12,000\ncustomers serving numerous end-use markets including construction, energy,\npetrochemical, utility, healthcare, education and institutional. SPI has\nlong-term customer relationships ranging from strong regional customers to the\nindustry's largest commercial contractors and industrial processors. SPI has\nlong term supplier relationships with all the leading manufacturers in the\ncommercial and industrial sectors distributing a full range of products. SPI's\nmanagement team has demonstrated significant growth both organically and\nthrough acquisitions by completing 22 transactions since 1997 while\nsuccessfully managing through various economic cycles.\n\n\nGrant Billing, Chairman and Chief Executive Officer of Superior, stated\nthat, "We are very pleased to enter into this transaction with SPI to expand\nour construction products distribution business as part of Superior's growth\nstrategy. SPI's business is an excellent strategic fit, purchased at a\nfavourable point in the business cycle and is complementary to Superior's\nexisting Winroc construction products operations in North America. In addition\nto adding commercial and industrial ins...