Superior Plus expands propane operations in the Northeast

Superior Plus Propane entered into an agreement to acquire the assets of Rymes Propane and Oil, a retail propane and heating oil distribution company based in New Hampshire, for the aggregate purchase price of about $159 million before adjustments for working capital.

The acquisition, which is subject to customary regulatory and commercial closing conditions, is anticipated to close by Sept. 30.

According to Superior Plus Propane’s parent company, Superior Plus Corp., this acquisition aligns with its core strategy of investing in established businesses that are in desirable geographies and generate stable free cash flow. It also expands Superior Plus Corp.’s U.S. propane distribution footprint and scale in New Hampshire and New England.

Founded in 1969 by James T. Rymes, Sr. and Carol Rymes, Rymes Propane and Oil serves about 88,000 residential and commercial customers primarily in New Hampshire, Maine, Massachusetts and Vermont. The company has 46 operating locations, about 3 million gallons of storage capacity, a fleet of 350 vehicles and about 370 employees.

New Hampshire is an attractive propane distribution market for Superior Plus to expand its footprint, says the company. Based on management estimates and independent third-party research, the New Hampshire retail propane distribution market has about 185 million gallons of demand and an opportunity for further industry consolidation, as the market is highly fragmented with more than 50 independent propane retailers operating in the state.

“We are very pleased to enter into this transaction, which expands our U.S. propane distribution business in the Northeast U.S.,” says Luc Desjardins, Superior Plus Corp.’s president and CEO. “Rymes is a solid business, and we look forward to welcoming the team to Superior and continuing to provide outstanding customer service to their customers. The acquisition of Rymes is our third acquisition in 2020 and increases the total value of acquisitions in 2020 to approximately $270 million.”

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