Superior Plus Corp. has announced the completion of the previously announced sale of its specialty chemicals business to Birch Hill Equity Partners for total consideration of $725 million.

Under the terms of the Transaction, Superior received $600 million in cash proceeds from Birch Hill, subject to certain adjustments, and $125 million in the form of a 6% unsecured note issued by the affiliate of Birch Hill that is acquiring Specialty Chemicals. The consideration received is subject to certain post-closing adjustments as previously disclosed.

“We are excited to announce the close of the Transaction as this represents the completion of Superior’s transformation into a pure-play energy distribution company,” said Luc Desjardins, President and CEO of Superior.

“The sale of Specialty Chemicals was an important component of our strategic plan and provides us with additional capital to further accelerate our accretive growth strategy in the U.S. and Canadian propane markets. We have a robust pipeline of acquisition opportunities and we anticipate more than doubling the U.S. Propane Distribution EBITDA from operations over the next five years.”

Orrick, Herrington & Sutcliffe LLP acted as legal counsel to Superior on the Transaction. Barclays acted as financial advisor to Superior.

Superior is also pleased to announce that its wholly-owned subsidiaries, Superior Plus LP, Superior General Partner Inc. and Superior Plus US Financing Inc., have completed an extension of their $750 million senior secured revolving credit facility with The Bank of Nova Scotia and TD Securities as Co-Lead Arrangers, and a syndicate of ten lenders.