Business
Superior Plus to acquire JW Aluminum, a leading manufacturer of specialty flat-rolled aluminum products - and announces - offering of subscription receipts and extendible convertible debentures
Superior Plus to acquire JW Aluminum, a leading manufacturer of specialty flat-rolled aluminum products - and announces - offering of subscription receipts and extendible convertible debentures.
About this update from Superior Plus Corp
[{"type":"text","content":"\n\n\n\n\nTSX: SPF.UN\n\nCALGARY, Sept. 29 /CNW/ - Superior Plus Income Fund (the \"Fund\")\nannounced today that Superior Plus Inc., through its wholly-owned US\nsubsidiary, has entered into an agreement to purchase all of the issued and\noutstanding shares of JW Aluminum Holding Company (\"JWA\"), for a purchase\nprice of US $350 million (approximately Cdn. $412 million) on a debt free\nbasis, subject to certain adjustments. Closing of the acquisition is subject\nto normal commercial closing conditions. JWA is a manufacturer of specialty,\nflat-rolled aluminum products, primarily serving the heating, ventilation and\nair conditioning (\"HVAC\"), building and construction, and flexible packaging\nend-use markets in the United States. Closing is anticipated to be completed\nin October, 2005.\n\nBenefits of the Proposed Acquisition\nThe transaction is expected to be immediately accretive to the Fund's\ncash distributions per trust unit and the Fund has, conditional upon\ncompletion of the acquisition, raised its monthly cash distribution by 2.5%\nfrom $0.20 to $0.205 per trust unit, or from $2.40 to $2.46 on an annualized\nbasis, effective for the first monthly distribution declared following the\nclosing of the acquisition.\nThe acquisition is expected to provide Superior Plus with further\nbusiness diversification and an additional platform for value growth. JWA's\nbusiness is well established and demonstrates the following strong\nfundamentals, which are consistent with the Fund's acquisition criteria and\nobjectives:\n\n- strong competitive position in the specialty flat-rolled aluminum\n fabrication industry with a diversified portfolio of products and\n end-use customers;\n- no direct exposure to aluminum commodity price risk;\n- history of stable and growing operating cash flow with a significant\n amount of production capacity subject to annual contractual sales\n commitments;\n- history of low and predictable maintenance capital requirements;\n- strong operating management who will continue to manage the business;\n and\n- significant growth potential through both organic and acquisition\n growth opportunities.\n\nIn commenting on the acquisition, Geoff Mackey, President and CEO of\nSuperior Plus, stated, \"JWA meets all of the Fund's acquisition criteria and\nwe are excited to have another strong platform and strong man...