Superior Plus Corp. is set to acquire Certarus Ltd., a low-carbon energy solutions provider based in North America, for CA$1.05 billion (US$780 million) in cash and stock agreement, Superior announced Dec. 22.
Superior, based in Toronto, will acquire all of Certarus’ outstanding common shares representing an equity value of CA$853 million, as well as assuming Certarus’ outstanding senior bank credit adding leases valued at CA$196 million.
Current Certarus shareholders will receive CA$353 million in cash and CA$500 million in shares valued at $10.25 each. The shares issued to Certarus shareholders and expanded committed credit facilities will put Superior in a financial position capable of growth by providing increased liquidity, the company said.
The transaction is expected to close in the first quarter of 2023.
Certarus, based in Calgary, distributes over-the-road low-carbon fuels like compressed natural gas (CNG), renewable natural gas (RNG) and hydrogen through interchangeable mobile storage units to customers that do not have infrastructure for distribution or are in need of supplemental infrastructure.
Certarus operates 18 hubs throughout Canada and the U.S. and is the largest on-road low-carbon fuels distributor in North America. The company expects to have 640 mobile storage units by the end of the year.
“The acquisition of Certarus is a highly strategic and transformative transaction for Superior as it represents an exciting opportunity for significant organic growth and provides our existing and new customers with the ability to meet their ESG goals through our low carbon energy distribution platform,” said Luc Desjardins, Superior’s president and CEO.
The acquisition of Certarus’ lower carbon and renewable fuels platform will cater to increasing customer demand for CNG, RNG and hydrogen, which the company said are lower cost and lower carbon alternatives to diesel.
“With our execution on the Superior Way Forward strategic initiatives in the past 24 months, we are ahead of our timing to achieve $700 million to $750 million in EBITDA from operations as we now expect to reach the lower end of the target by 2024,” Desjardins said.
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