Superior Plus transitions to pure-play propane company Superior Plus transitions to pure-play propane company
LP Gas magazine published a list of mergers and acquisitions that took place over the past 12 months. Superior Plus Corp. is one of several companies that continues to expand its presence in the U.S. propane market, as it’s become the fourth-largest propane retailer in the U.S., per LP Gas’ Top Retailers rankings. LP Gas asked Inder Minhas, senior vice president of mergers and acquisitions at Superior Plus Corp., about the company’s latest activity.
LP Gas: In our view, you made some large, notable deals over the past 12 months. How would you characterize this time frame? Has this been a defining period for Superior Plus?
Minhas
Minhas: The past 12 months have been a period of transition and progression for Superior Plus. In early 2021, we sold our non-core specialty chemicals business, completing our transition to a pure-play propane distribution company and providing significant capital to invest in our U.S. propane distribution business, Superior Plus Propane. We have acquired propane businesses in the Northeast, Southeast and Western U.S., growing our business in our current footprint and expanding our footprint in California and the Midwest.
LP Gas: What is your growth strategy when it comes to the U.S. propane market?
Minhas: Our focus is building regional density in our existing markets and attractive, adjacent markets through highly accretive small and mid-tier acquisitions, as well as organic growth. We are also open to larger platform opportunities should those arise.
LP Gas: What types of companies does Superior Plus seek in an acquisition?
Minhas: Superior focuses on acquiring quality businesses with strong brands, well-trained and long-tenured employees, a track record of safe operations, and a focus on customer service.
LP Gas: Do the companies you acquire become branded as Superior Plus or do they retain their company name and local identity in their community?
Minhas: Our preference is to retain the local brand names of the businesses we acquire. The companies we acquire are woven into the fabric of their communities, and preserving that identity is important to both our customers and employees. We are most successful when we couple strong local engagement with our deeper resources and benefits of being part of a larger entity, including reliability and security of supply and value-added, customer-facing digital tools, such as mobile apps for delivery information and customer service.
LP Gas: What can we expect from Superior Plus in the M&A space moving forward?
Minhas: We will be active in the acquisition market for the foreseeable future as we are focused on acquiring quality industry participants and increasing the scale of our business in the U.S. We’re constantly on the lookout for best-in-class propane companies to join us.