Superior Plus Corp announced yesterday that its subsidiary, Superior Plus LP, has entered into a definitive agreement with Birch Hill Equity Partners (Birch Hill) to sell its specialty chemicals business for total consideration of $725 million.

Under the terms of the ransaction, Superior will receive $600 million in cash proceeds from Birch Hill, and $125 million in the form of a 6% unsecured note issued by an affiliated entity of Birch Hill that is acquiring specialty chemicals.

The sale of Superior’s Specialty Chemicals business represents the final step in Superior’s long-term portfolio transformation into a pure-play energy distribution company.

With this sale, Superior is reinforcing its focus on growing its industry-leading North American retail propane distribution platform and delivering long-term shareholder value.

Proceeds from the ransaction will improve Superior’s financial flexibility and allow the company to accelerate its growth through acquisitions of retail propane distribution businesses.

In 2020, Superior acquired more than $285 million of energy distribution assets, and Superior has already completed three acquisitions in the U.S. and Canada in 2021. Superior has a robust pipeline of acquisition opportunities and anticipates more than doubling the U.S. Propane Distribution EBITDA from operations over the next five years.

“We are excited to enter into this transaction with Birch Hill,” said Luc Desjardins, President and CEO of Superior. “The sale of Specialty Chemicals is an important component of our strategic plan and provides us with additional capital to further accelerate our accretive growth strategy in the U.S. propane market.”