Written on: March 28, 2022 by ICM
Superior Plus Corp. announced it has completed the previously announced acquisition of the equity interests of Kamps Propane, Inc., High Country Propane, Inc., Pick Up Propane, Inc., Competitive Capital, Inc. and Propane Construction and Meter Services and Kiva Energy, Inc. for a purchase price of approximately $240 million. The purchase price was paid with funds drawn from Superior’s existing credit facility, according to a press release.
“We are pleased to complete this acquisition as it provides us with a substantial retail propane distribution platform on the west coast of the U.S. in addition to providing anticipated annual run-rate synergies of approximately US $7 million after 24 months,” said Luc Desjardins, President & CEO of Superior.
“I am excited to welcome Kamps Propane, its people and its customers to the Superior Plus Propane family,” added Andy Peyton, President of Superior’s U.S. propane distribution business. “The acquisition of Kamps Propane creates a strong platform for us in California to further expand our service in an attractive region.”
“I am excited to welcome the Kiva Energy employees and customers to the Superior Plus family,” said Shawn Vammen, SVP of Superior’s Supply Portfolio Management business. “We’re looking forward to servicing Kiva’s wholesale customers, and achieving anticipated cost savings through our expanded wholesale platform in the western region of the U.S.”
Overview of Kamps Propane and Kiva Energy:
On a normalized basis, including the achievement of expected synergies and weather consistent with the five-year average, Superior expects Kamps Propane and Kiva Energy to generate approximately US $34 million in Adjusted EBITDA on a run-rate basis in the next 24 months.
Superior is a leading North American distributor and marketer of propane and distillates and related products and services, servicing approximately 890,000 customer locations in the U.S. and Canada.