Business
Superior Plus Announces Expansion of its US Refined Fuels Business with a US$76 Million Acquisition
Superior Plus Announces Expansion of its US Refined Fuels Business with a US$76 Million Acquisition
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nNov. 4, 2009 (Canada NewsWire Group) -- CALGARY, Nov. 4 /CNW/ -- Superior Plus Corp. (\"Superior\") is pleased to announce that one of its subsidiaries has entered into an Asset Purchase Agreement to acquire certain assets of \"Griffith Energy Services, Inc. (\"GES\") that comprise a retail heating oil, propane and motor fuels distribution business (the \"Business\") for an aggregate purchase price of approximately US$76 million in cash including working capital (the \"Acquisition\"). Closing of the Acquisition is subject to customary regulatory and commercial closing conditions and is expected to be completed in December 2009.In 2008, the Business delivered approximately 37.2 million gallons of heating oil, 1.9 million gallons of propane, 13.4 million gallons of motor fuel and 2.6 million gallons of other related fuel products to customers primarily in Connecticut, Pennsylvania and Rhode Island.The fuel distribution mix of the Business consists of approximately 68% heating oil, 24% motor fuel, 3% propane and 5% other related fuel products based upon 2008 volumes. The customer profile of the Business consists of approximately 90% residential customers and 10% commercial customers. The Business also supports its retail fuel distribution business by providing heating, ventilation and air conditioning repair and other related services throughout its area of operations.The Business maintains 16 facilities for office space, fuel storage, fuelling and vehicle storage, of which five are owned and the remainder are leased. The Business has a well-maintained fleet of over 240 delivery and service vehicles and employs approximately 250 non-union employees. The GES business overlaps with Superior's current operations in several areas.GES's management team has grown the Business both organically and through acquisitions by completing more than 40 acquisitions since 2000. Assuming the Acquisition is completed, Superior intends to combine the GES team with its current management to operate the Business.Grant Billing, Chairman and Chief Executive Officer of Superior, stated that, \"We are very pleased to enter into this transaction to expand our refined fuel distribution and energy services business in the north-eastern United States as part of Superior's growth strategy. GES's business operations in Connecticut, Pennsylvania and Rhode...