Business
Superior Plus Completes US$135 Million Acquisition of Specialty Products & Insulation Co.
Superior Plus Completes US$135 Million Acquisition of Specialty Products & Insulation Co.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nSep. 24, 2009 (Canada NewsWire Group) -- CALGARY, Sept. 24 /CNW/ -- Superior Plus Corp. (\"Superior\") today closed the previously announced acquisition of Specialty Products & Insulation Co. (\"SPI\") for an aggregate purchase price of US$135 million. The acquisition extends Superior's geographical footprint into the United States from 4 to 31 states complementing its existing construction products distribution business in Canada. SPI's distribution network includes 70 operation centres serving a diversified customer base of approximately 12,000 customers. The SPI acquisition increases Superior's construction products offering by providing a comprehensive selection of insulation and architectural, including fabrication, named products focused on commercial and industrial markets.Grant Billing, Chairman and Chief Executive Officer of Superior, stated \"The closing of this transaction allows Superior to become a leading specialty construction products distributor and service provider in North America. We have made considerable progress in organizing our US construction products business and look forward to working with an experienced SPI team. We are confident that the development of this business segment will be a platform for additional future growth opportunities.\"Superior financed the acquisition of SPI through a private placement of an aggregate of 2,803,135 common shares to certain securityholders of SPI for proceeds of approximately US$30 million (CDN $32.2 million) and net proceeds from a public offering of convertible debentures of approximately US$61.7 million (CDN$66.3 million). The remaining balance of the purchase price was financed through Superior's $570 million syndicated credit facility. Superior's Executive Vice President and CFO Wayne Bingham commented, \"Superior's ability to source capital cost effectively demonstrates confidence in Superior's existing operations and North American growth opportunities.\"About the Corporation---------------------Superior is a diversified corporation. Superior holds 100% of Superior Plus LP, a limited partnership formed between Superior General Partner Inc., as general partner and Superior as limited partner. Superior Plus is focused on stability of dividends with value growth and has four Canadian based operating businesses: Superior Propane is Canada's largest distr...