TORONTO–Superior Plus Corp. (TSX:SPB) has officially announced the completion of its acquisition of Kamps Propane, Inc., alongside High Country Propane, Inc., Pick Up Propane, Inc., Competitive Capital, Inc., and Propane Construction and Meter Services, collectively known as “Kamps Propane,” and Kiva Energy, Inc. The transaction, valued at approximately US$240 million (CDN $302 million), was finalized and funded through Superior’s existing credit facility, marking a significant expansion in the U.S. propane market for the company.
This strategic acquisition provides Superior Plus with a robust retail propane distribution platform, particularly strengthening its presence on the west coast of the United States. The company anticipates substantial operational efficiencies, projecting annual run-rate synergies of around US $7 million within the first two years post-acquisition.
Luc Desjardins, President and CEO of Superior Plus, stated, “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.” This acquisition underscores Superior’s commitment to growth and expanding its market reach within North America.
Andy Peyton, President of Superior’s U.S. propane distribution business, also expressed enthusiasm about the integration, saying, “I am excited to welcome Kamps Propane, its people and its customers to the Superior Plus Propane family. The acquisition of Kamps Propane creates a strong platform for us in California to further expand our service in an attractive region.” This highlights the strategic importance of California and the western U.S. market for Superior’s propane distribution expansion plans.
Shawn Vammen, Senior Vice President of Superior’s Supply Portfolio Management business, commented on the Kiva Energy aspect of the deal: “I am excited to welcome the Kiva Energy employees and customers to the Superior Plus family. 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.” This indicates the dual benefit of the acquisition, encompassing both retail and wholesale market enhancements for Superior Plus.
Kamps Propane and Kiva Energy: Key Overview
The acquisition brings significant assets and customer base to Superior Plus:
- Extensive Customer Reach: Over 45,000 customers across residential, commercial, and wholesale sectors.
- Broad Operational Footprint: Approximately 280 employees operating from 14 retail branches and 5 company-operated rail terminal locations.
- Large Service Fleet: A fleet exceeding 375 vehicles, enabling service across 16 states in the Western U.S.
- Strong Financial Performance: Kamps Propane and Kiva Energy have demonstrated robust financial health with an Adjusted EBITDA of approximately US $27 million (CDN $34 million) in the fiscal year 2021.
Looking ahead, Superior Plus anticipates even greater financial contributions from these acquisitions. On a normalized basis, factoring in expected synergies and average weather conditions, the company projects Kamps Propane and Kiva Energy to generate approximately US $34 million (CDN $42 million) in Adjusted EBITDA on a run-rate basis within the next 24 months. This forward-looking statement reflects confidence in the integration and future performance of the acquired entities.
About Superior Plus
Superior Plus is a prominent North American distributor and marketer specializing in propane and distillates, along with related products and services. The company serves approximately 890,000 customer locations across the U.S. and Canada, solidifying its position as a leader in the energy distribution sector. This acquisition of Kamps Propane further cements Superior’s dedication to expanding its footprint and service offerings within the propane industry.
For investors and stakeholders seeking more detailed information about Superior Plus, the company website www.superiorplus.com provides comprehensive resources. Alternatively, individuals can reach out to investor relations contacts Beth Summers, Executive Vice President and Chief Financial Officer, or Rob Dorran, Vice President, Capital Markets, for direct inquiries.
Contact Information:
Beth Summers
Executive Vice President and Chief Financial Officer
Tel: (416) 340-6015
Rob Dorran
Vice President, Capital Markets
Tel: (416) 340-6003
E-mail: [email protected]
Toll Free: 1-866-490-PLUS (7587)
This acquisition represents a strategic move for Superior Plus, enhancing its market position and promising future growth through expanded operations and synergistic benefits from Kamps Propane and Kiva Energy.
