Superior Plus Corp. SPB-T will acquire Certarus Ltd. for $1.05-billion including debt, the companies said on Thursday, adding low-carbon fuels to Superior’s portfolio.
Certarus operates mobile storage units to bring green fuels including compressed natural gas, renewable natural gas and hydrogen to North American customers who want to transition away from diesel and other distillates but do not have the infrastructure in place.
It directly passes on changes in the commodity cost of its fuels to customers.
The Calgary-based company expects to expand the number of its fuel-moving trailers to 640 by the end of the year.
Superior’s chief executive Luc Desjardins added the Toronto-based company now expects to hit the lower end of its target of $700-million to $740-million in EBITDA from operations by 2024, two years ahead of schedule.
The equity value of the deal is $853-million. Superior, which distributes and markets propane and distillates, will also assume Certarus’ outstanding senior bank credit and leases worth $196-million.
Certarus shareholders will own about 17 per cent of the combined company as they will receive $353-million in cash and $500-million of Superior common shares at $10.25 a share.
The deal is expected to close in the first quarter of 2023.