/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Dec. 11 /CNW/ - Superior Plus Corp. ("Superior") is pleased to announce that Superior Plus Energy Services LLC, its indirect wholly owned US subsidiary has successfully closed the previously announced acquisition to acquire certain assets that comprise a retail heating oil, propane and motor fuels distribution business from Griffith Energy Services, Inc. ("Griffith") for an aggregate purchase price, including working capital for approximately US $75 million in cash.
Griffith is a US distributor of a broad range of liquid fuels and propane gas, serving markets in Connecticut, Pennsylvania and Rhode Island. Griffith's also provides its customers with a broad range of services, including heating, ventilation, air conditioning repair and other related services.
Grant Billing, Chairman and Chief Executive Officer of Superior, stated, "The closing of this transaction continues Superior's strategy of expanding and consolidating its existing US heating oil distribution business in conjunction with its Energy Services growth strategy. The experienced operating staff associated with the newly acquired assets have joined the Superior team and we look forward to working with them to build our business."
The heating oil and propane distribution business is highly fragmented throughout the north-eastern United States and eastern Canada. Superior intends to pursue additional acquisition and consolidation opportunities in Energy Services, enhance the acquired propane and service offerings as well as expand heating oil distribution at some of Superior Propane's current locations.
The purchase price for these assets was financed with the net proceeds of approximately CDN $48.0 million raised from Superior's bought deal common share public offering completed on November 26, 2009 with the remaining balance being satisfied by Superior drawing on its $570 million syndicated credit facility. Superior's Executive Vice- President and Chief Financial Officer, Wayne Bingham commented, "Superior continues to have excellent access to capital and benefit from strong support received from its investors and lending syndicate."
About the Corporation
Superior is a diversified corporation. Superior holds 100% of Superior Plus LP, a limited partnership formed between Superior General Partner Inc., as general partner and Superior as limited partner. Superior is focused on stability of dividends with value growth. Superior Plus LP consists of three primary operating divisions: Energy Services includes the distribution of propane and distillates and related fixed-price energy services; Specialty Chemicals includes the manufacture and sale of specialty chemicals; and Construction Products Distribution includes the distribution of specialty construction products.
Superior's shares and convertible debentures trade on the TSX as follows:
Trading Symbol Security Issued and Outstanding
SPB Common Shares 100.0 million
SPB.db.b 5.75% Debentures, Series 1 $174.9 million
SPB.db.c 5.85% Debentures, Series 1 $ 75.0 million
SPB.db.d 7.5% Debentures $ 69.0 million
Forward Looking Information
Certain information included in this Press Release is forward-looking, within the meaning of applicable Canadian securities laws. Much of this information can be identified by looking for words such as "believe", "expects", "expected", "will", "intends", "projects", "anticipates", "estimates", "continues" or similar words. Superior believes the expectations reflected in such forward-looking information are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon.
Forward-looking information is based on current information and expectations that involve a number of risks and uncertainties, which could cause actual results to differ materially from those anticipated. In particular, this press release includes forward-looking information pertaining to Superior's business strategy including future plans to pursue additional acquisition and consolidation opportunities within its Energy Services division, enhance the acquired propane and service offerings as well as expand heating oil distribution at some of Superior Propane's current locations. These risks include, but are not limited to the risks related to Superior's businesses including those identified in Superior's 2008 Annual Information Form under the heading "Risk Factors". Reference should be made to this additional information prior to making any investment decision. Forward looking information contained in this press release is made as of the date hereof and is subject to change. The company assumes no obligation to revise or update forward looking information to reflect new circumstances, except as required by law.
SOURCE SUPERIOR PLUS CORP.
For further information: For further information: about Superior, please visit our website at: www.superiorplus.com or contact: Wayne Bingham, Executive Vice-President and Chief Financial Officer, Tel: (403) 218-2951, Fax: (403) 218-2973, E-mail: email@example.com; or Jay Bachman, Vice-President, Investor Relations and Planning, Tel: (403) 218-2957, Fax: (403) 218-2973, E-mail: firstname.lastname@example.org, Toll Free: 1-866-490-PLUS (7587)