Superior Plus to buy Canwest Propane from Gibson Energy
TORONTO - Superior Plus Corp. (TSX:SPB) has signed a deal to buy the Canwest Propane industrial propane business in Western Canada from Gibson Energy Inc. (TSX:GEI) for $412 million. Canwest is a 30-year-old company with more than 50,000 customers, including international, national and large regional companies, making it one of Canada’s largest industrial propane distributors. Toronto-based Superior Plus said it’s aiming to find at least $20 million in pre-tax synergies within 24 to 36 months of closing the transaction. Gibson Energy will continue to operate Canwest - which also does business under the Stittco brand - with the current management team until the transaction closes in the second half of this year. Calgary-based Gibson Energy, which provides a variety of storage, processing, transportation and distribution services for the oil industry, set up a process last year to sell Canwest.