Superior Plus sells non-propane assets

Superior Plus Corp. announced Superior Plus Energy Services (SPES), a subsidiary of Superior Plus LP, will sell its wholesale refined fuels business and refined fuel terminal assets in New York to Sunoco LP.

According to the company, the agreement is for a total cash consideration of $39.8 million plus net working capital at closing. The transaction is expected to close in April and is subject to customary purchase price adjustments and closing conditions.

Superior also sold certain retail distillate assets in Pennsylvania to a third-party for total cash consideration of about $16 million. The two sales are in line with the company’s goal of growing its U.S. propane business.

“The sale of these wholesale and retail distillate assets is consistent with our goal to streamline our product offerings, reduce our heating oil and distillate business exposure and grow our U.S. business by investing in retail propane distribution assets,” says Luc Desjardins, Superior’s president and CEO. “The proceeds from the sale of these assets allows us to repay debt which can be redrawn to fund acquisitions of retail propane assets consistent with our corporate strategy while maintaining our earnings guidance for 2018.”

The assets to be sold to Sunoco LP are part of SPES’ wholesale refined fuels operations across five states in the northeast U.S. and includes three pipeline-connected terminals in New York. With the sale, Superior is growing its U.S. propane business while selling off non-propane assets.

According to Superior, with the assumption of completing these divestitures, its guidance for 2018 of adjusted operating cash flow per share of $1.65 to $1.95 and adjusted earnings before interest taxes, depreciation and amortization of $295 million to $335 million remains unchanged.