Published On: Sat, Sep 15th, 2018

Superior Plus to buy propane and butane distributor United Pacific Energy

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Superior Plus, an energy distribution and specialty chemicals business, has agreed to acquire 100% of United Liquid Gas Company, which operates as United Pacific Energy (UPE), a wholesale propane and butane distributor in California.

Financial terms of Superior Plus acquisition of United Pacific Energy have not been disclosed.

The acquisition will help Superior Plus expand its wholesale propane business in the US. It follows the company’s acquisition of NGL Propane, a retail propane business, from NGL Energy Partners in July.

United Pacific Energy operates four rail terminals with nearly 9.8 million litres of natural gas liquid storage capacity. These rail terminals are located in Fairfield, Anderson, Bakersfield and Rancho Cucamonga.

United Pacific Energy also operates a refinery at Martinez and a gas plant at Los Angeles.

The propane and butane distributor caters to more than 115 retail propane distribution companies and other wholesale customers, mainly in the California market.

Superior Plus to acquire propane and butane distributor United Pacific Energy.

Superior Plus to acquire propane and butane distributor United Pacific Energy. Photo courtesy of Stuart Miles at FreeDigitalPhotos.net.

Luc Desjardins – Superior Plus President and CEO, commenting on Superior Plus acquisition of United Pacific Energy, said: “The acquisition of UPE is consistent with our Evolution 2020 objective to expand the wholesale propane business through opportunistic acquisitions across North America and demonstrates our commitment to further expand our wholesale propane marketing presence in the U.S.

“The acquisition of UPE is our fifth acquisition in 2018 and fourth tuck-in acquisition.”

The transaction will be financed by using the existing credit facility of Superior Plus and is expected to be completed early in Q4 2018, based on satisfaction of some customary closing conditions.

Commenting on Superior Plus acquisition of United Pacific Energy, Shawn Vammen – Senior Vice President of Superior Plus Supply Portfolio Management business, said:  “UPE is a well-run business with over 20 years serving propane customers in the California marketplace.

“This acquisition adds significant volume to our portfolio, diversifies our customer and geographical base and includes an attractive group of assets with coastal presence that is integral in our continued expansion of the wholesale business along the western coast of the U.S.”

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