Superior Plus Corp. has announced that an indirect wholly-owned subsidiary has completed the acquisition of NGL Propane LLC, NGL Energy Partners LP’s retail propane distribution business.
“We are pleased to be completing this significant transaction early in 3Q18 and are eager to commence combining the best of Superior and NGL Propane in order to achieve anticipated annual run-rate synergies of US$20 million to US$25 million,” said Luc Desjardins, President and CEO of Superior. “We look forward to implementing our industry leading digital strategy and operating platform to further enhance the customer experience for our customers.”
Andy Peyton, President of Superior’s US propane distribution business added: "I am excited to welcome NGL Propane, its people and its partners to the Superior Plus Propane family. The combination of these two propane companies creates a strong platform and reflects the hard work and contributions of many employees from both organisations.”
Superior will update its 2018 Financial Outlook for adjusted operating cash flow per share and adjusted EBITDA guidance concurrently with the release of its Q2 2018 financial results.
Below is a summary of the acquired business:
- Over 316 000 residential, commercial and industrial customers.
- 1150 employees in 151 locations (including 61 satellite distribution locations).
- A fleet in excess of 1000 trucks servicing 21 states in the Northeast US, Southeast US and Upper Midwest US and the District of Columbia.
- Prominent regional brands, including Osterman Propane, Downeast Energy, Eastern Propane, Atlantic Propane, Anthem Propane, Gas Inc. and Brantley Gas.
- Sales volumes of approximately 182 million gal. of fuel, generating approximately US$85 million (CAN$111 million) in fiscal 2018 adjusted EBITDA.
- After adjusting for the pro forma impact of acquisitions completed during fiscal 2018, normalised EBITDA estimated to be approximately US$90 million (CAN$117 million).
The purchase price for the transaction was approximately US$900 million, excluding transaction costs, and subject to customary closing adjustments.
Read the article online at: https://www.hydrocarbonengineering.com/special-reports/11072018/superior-plus-acquires-retail-propane-business/