Tulsa’s NGL Energy Partners LP announced this week it wrapped up its $900 million sale of its Retail Propane business to Superior Plus Corporation.
The sale was announced in May when the company said it planed to exit the retail propane business and focus its capital on the Water Solutions and Crude Logistics businesses. NGL leaders felt the water and crude divisions offered a higher rate of return.
The company said it would use the proceeds from the sale to repay indebtedness.
Superior is based in Toronto, Canada and with the acquisition assumes more than 316,000 residential, commercial and industrial customers. It will also get 1,150 employees in 151 locations and a fleet of more than 1,000 trucks in 21 states in the Northeast U.S., Southeast and upper Midwest.
“We are pleased to be completing this significant transaction early in the third quarter and are eager to commence combining the best of Superior and NGL Propane in order to achieve anticipated annual run-rate synergies of US$20 million to US$25 million,” said Luc Desjardins, President and Chief Executive Officer of Superior. “We look forward to implementing our industry leading digital strategy and operating platform to further enhance the customer experience for our customers.”
Andy Peyton, President of Superior’s U.S. propane distribution business added, “I am excited to welcome NGL Propane, its people and its partners to the Superior Plus Propane family. The combination of these two propane companies creates a strong platform and reflects the hard work and contributions of many employees from both organizations.”