Superior Plus to acquire Kamps Propane in $240 million deal

Superior Plus Propane, a subsidiary of Superior Plus Corp., entered into an agreement to acquire the equity interests of Kamps Propane Inc., High Country Propane Inc., Pick Up Propane Inc., Kiva Energy Inc., Competitive Capital Inc. and Propane Construction and Meter Services (collectively, “Kamps”) for an aggregate purchase price of about $240 million (CA$299 million) before adjustments for working capital.

Founded in 1969 by John Kamps, Kamps is an independent family-owned and -operated retail and wholesale propane distributor based in California, servicing about 45,000 residential, commercial and wholesale customers. Kamps has 14 retail branch offices, five company-operated rail terminals, more than 375 vehicles and about 280 employees.

“We are very pleased to enter into this transaction, which expands our U.S. propane distribution business in California,” says Luc Desjardins, Superior Plus Corp.’s president and CEO. “John Kamps has built a great business, and we look forward to welcoming the Kamps employees to Superior and continuing to provide outstanding customer service to their customers. The acquisition of Kamps is our sixth acquisition in 2021 and moves us further toward the Superior Way Forward acquisition target of $1.9 billion.”

The acquisition expands Superior’s U.S. propane distribution footprint and scale into a new customer base in California. It also establishes a large operating platform expected to increase opportunities for future acquisitions in California, according to Superior.

During the year ended Dec. 31, 2020, Kamps earned approximately $27 million (CA$34 million) in adjusted EBITDA. On a normalized basis, including the achievement of expected synergies and weather consistent with the five-year average, Superior says it expects Kamps to generate approximately $34 million (CA$42 million) in adjusted EBITDA on a run-rate basis 24 months following the close of the acquisition. Superior anticipates updating its 2021 adjusted EBITDA guidance concurrently with the release of its second quarter 2021 financial results.

The acquisition, subject to customary regulatory and commercial closing conditions, is anticipated to close during the third quarter of 2021. Superior plans to draw on its credit facility to fund the amount of the purchase price due on closing.

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