Todays Small Caps to Watch. Superior Plus Corp. (
) announced a deal to buy the retail propane distribution and refined fuels assets of Quarles Petroleum Inc. for about US$145-million.
Quarles services approximately 55,000 residential and commercial customers primarily in Virginia, the company stated, and has 29 propane bulk plants, one rail terminal, approximately three million gallons of storage capacity, a fleet of 197 vehicles and approximately 181 employees.
Superior expects Quarles to generate approximately US$19-million adjusted EBITDA on an annual run-rate basis 24 months following the close of the acquisition.
The company also announced a $250-million bought-deal financing. Superior said it has agreement with a syndicate of underwriters bookrun by CIBC Capital Markets to buy about 22.3 million shares for $11.20 each. Brookfield, through its special investments program, is participating as an anchor investor in the offering and is committed to purchasing approximately $75-million in shares at the offering price, the company stated.
The net proceeds of the offering will be used to reduce debt and for general corporate purposes including to fund future acquisitions, the company stated.