The investment strengthens Superior’s balance sheet and enhances its ability to pursue acquisitions in a consolidating U.S. propane market
Canadian alternative asset management company Brookfield Asset Management, through its Special Investments programme, to make an equity investment of $260m in a specialty chemicals firm, Superior Plus.
The funding will be provided through the purchase of newly created perpetual exchangeable series 1 preferred stock of US subsidiary of Superior Plus.
Superior Plus said that the investment strengthens its balance sheet and enhances its ability to pursue acquisitions in a consolidating US propane market.
The investment in Superior Plus is expected to be closed by the end of July 2020
Superior president and CEO Luc Desjardins said: “Acquisitions are becoming increasingly attractive as fewer competing buyers are pursuing growth at the current time.
“We are excited to partner with Brookfield on the execution of our strategy. Our differentiated business platform, combined with the improved financial strength and enhanced liquidity resulting from the Brookfield Investment, positions Superior to become the leading consolidator in the U.S. propane industry, which we view as a highly opportunistic environment.”
Subject to receipt of TSX approval and other necessary regulatory approvals, the investment is estimated occur by the end of July 2020.
The two primary operating businesses of Superior includes energy distribution and specialty chemicals.
The energy distribution business includes the distribution of propane and distillates, and supply portfolio management, while the other business includes the production and sale of specialty chemicals.