Superior Plus Corp. has entered into an agreement to acquire all of the propane distribution assets of the R.W. Earhart Co. for an aggregate purchase price of approximately US$38 million, subject to certain adjustments. The purchase price will be funded by drawing on Superior's existing credit facility. The Acquisition is anticipated to close during the fourth quarter of 2017, subject to the satisfaction of certain customary commercial conditions.
Earhart is an established independent propane marketer within the state of Ohio. The company is anticipated to add approximately 12 600 residential and commercial customers and 12.5 million gal. (47.3 million l) of retail propane sales to Superior's energy distribution operations in the US."The acquisition of the propane distribution assets will expand Superior’s existing propane distribution operations in the US and demonstrates the compnay’s commitment to grow the Energy Distribution business through the application of its innovative, industry leading technology and services to propane companies acquired in Canada and the US," said Luc Desjardins, Superior's President and CEO. "The Earhart acquisition is our fourth acquisition of 2017, which is at the high end of our Evolution 2020 target, and we have more opportunities available to grow both our Energy and Chemicals business through tuck-ins."
"Earhart Propane is a well-run business with a strong track record that will expand our operations into attractive new markets for Superior" said Andy Peyton, President of Superior's US Refined Fuels business. "This platform includes a strong commercial propane business as well as a growing base of residential customers."
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