Business
Superior Plus Completes US$86 Million Acquisition of Sunoco Retail Heat
Superior Plus Completes US$86 Million Acquisition of Sunoco Retail Heat
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\nSep. 30, 2009 (Canada NewsWire Group) -- CALGARY, Sept. 30 /CNW/ -- Superior Plus Corp. (\"Superior\") is pleased to announce that Superior Plus Energy Services LLC (\"Superior Plus\"), its indirect wholly owned subsidiary has successfully closed the previously announced acquisition to acquire certain assets which make up a retail heating oil and propane distribution business (\"Sunoco Retail Heat\") from Sunoco, Inc. (R&M), and Sunoco, Inc. for an aggregate purchase price, including working capital of approximately US$86 million in cash.Sunoco Retail Heat is a US distributor of a broad range of liquid fuels and propane gas serving markets in Pennsylvania and New York which also provides comprehensive services to its customers. Sunoco Retail Heat has a distribution network which includes the operation of two pipeline-supplied fuel terminals and 22 retail bulk plants providing up to 20 million gallons of storage capacity in its core markets.Grant Billing, Chairman and Chief Executive Officer of Superior, stated, \"The closing of this transaction is the first step of Superior's strategic entry into the US heating oil distribution business as part of its North American energy distribution and services growth strategy. The experienced operating staff associated with the newly acquired assets have joined the Superior team and we look forward to working with them to build our business.\"The heating oil and propane distribution business is highly fragmented throughout the north-eastern United States and eastern Canada. Superior intends to pursue additional acquisition and consolidation opportunities in the industry on both sides of the border, enhance the acquired propane and service offerings as well as expand heating oil distribution at some of Superior Propane's current locations.The purchase price for these assets was financed with the net proceeds of approximately CDN $43.3 million raised from Superior's bought deal common share public offering completed on September 23, 2009 with the remaining balance being satisfied by Superior drawing on its $570 million syndicated credit facility. Superior's Executive Vice President and CFO, Wayne Bingham commented, \"Superior continues to have excellent access to capital and benefit from strong support received from its investors and lending syndicate.\"About the Corporation----------...