Business
Superior Plus Reaches Agreement to Sell JW Aluminum
Superior Plus Reaches Agreement to Sell JW Aluminum.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\n\nTSX: SPF.UN\n\nCALGARY, Nov. 8 /CNW/ - Superior Plus Income Fund (the \"Fund\") announced\ntoday that Superior Plus LP, through its wholly-owned subsidiary Superior Plus\nUS Holdings Inc., has entered into a definite agreement to sell all of the\nissued and outstanding shares of JW Aluminum Holding Company (\"JWA\"), for a\ntotal cash consideration of US $310 million (approximately Cdn. $350 million)\non a cash and debt free basis to Wellspring Capital Management LLC. Closing of\nthe acquisition is subject to normal regulatory and commercial closing\nconditions and is anticipated to be completed in December, 2006. Closing is\nnot conditional on any financing or due diligence condition.\nJWA is a leading manufacturer of specialty, flat-rolled aluminium\nproducts, primarily serving the heating, ventilation and air conditioning,\nbuilding and construction, and flexible packaging end-use markets in the\nUnited States. The intention to sell JWA had been announced in July of 2006 as\npart of the Fund's strategic plan to use the proceeds to reduce debt levels\nand focus on its Canadian based businesses.\nGrant Billing, Chairman and Chief Executive Officer of Superior Plus,\nsaid \"We are very pleased that an agreement to dispose of our investment in\nJWA could be reached expeditiously. This is another milestone with respect to\nthe implementation of our strategic plan designed to maximize Unitholder value\nand achieve long-term stability and value based growth. The proceeds from the\nsale of JWA will lower our senior debt to 1.8 times EBITDA and total debt\nlevel to 3.3 times EBITDA as at September 30, 2006, on a proforma basis\nadjusted for the disposition of JWA.\"\nRBC Capital Markets and TD Securities acted as exclusive financial\nadvisors to the Fund in relation to the sale of JWA.\n\nAbout the Fund\n--------------\nSuperior Plus Income Fund is a diversified business trust. The Fund holds\n100% of Superior Plus LP, a limited partnership formed between Superior Plus\nInc., as general partner and the Fund as limited partner. Superior Plus has\nfour Canadian based operating divisions: Superior Propane is Canada's largest\ndistributor of propane, related products and services; ERCO Worldwide is a\nleading supplier of chemicals and technology to the pulp and paper industries,\na regional Midwest supplier of chloralkali produc...