Superior Plus Corp. (Superior) has announced the closing of the acquisition of Caledon Propane Inc. (Caledon), a propane distributor serving residential and commercial customers in Ontario and Manitoba. The purchase price was CAN$8 million, subject to certain adjustments, representing approximately six times the annual Adjusted EBITDA of Caledon.
"This acquisition complements our existing operations and is consistent with our strategy to grow the Energy Distribution business through add-on acquisitions of propane companies and immediately leverage our solid platform," said Luc Desjardins, Superior's President and CEO.
"We would like to extend a warm welcome to the Caledon customers and team," said Greg McCamus, President of Superior Propane. "With such dedicated staff and a loyal customer base, the Caledon purchase represents a great fit with our business and company culture. The Caledon division will continue to operate from existing locations in Bolton, ON and Winnipeg, MB to ensure customers are supported with the high level of service they have come to expect."
The Caledon acquisition was funded from Superior's existing credit facilities. The transaction is not considered material to Superior from a financial perspective.
Adapted from press release by Francesca Brindle