TORONTO, ONTARIO--(Marketwired - Oct 13, 2017) - Superior Plus Corp. ("Superior") (TSX:SPB) is pleased to announce it has entered into an agreement to acquire all of the issued and outstanding shares of International Dioxcide, Inc. ("IDI") from LANXESS Corporation. IDI provides sodium chlorite based solutions including small-scale chlorine dioxide generation technology for biocidal and oxidative applications in municipal drinking water disinfection, cooling tower treatment, oil and gas fracturing, stimulation and odour control, rendering, paper machine slimicide, process water, wastewater treatment and food processing. The purchase price will be funded by drawing on Superior's existing credit facility. The acquisition of IDI is anticipated to close during the fourth quarter of 2017, subject to the satisfaction of certain customary commercial conditions.
"The acquisition of IDI enables our Specialty Chemicals business to vertically integrate its sodium chlorite production with the end customer applications and solutions that IDI offers," said Luc Desjardins, Superior's President and CEO. "The IDI acquisition is our fifth acquisition of 2017, which is above the high end of our Evolution 2020 target, and we continue to evaluate opportunities available to grow both our Energy and Chemicals businesses through tuck-ins."
"The IDI business fits well with our business and further solidifies ERCO's product offering within sodium chlorate, sodium chlorite and chlorine dioxide," said Ed Bechberger, President of Superior's Specialty Chemicals business. "ERCO and IDI have worked together successfully for over 25 years. IDI was a key ERCO customer for sodium chlorite and this transaction is a natural evolution for this long-standing and rewarding business relationship."
IDI is a well-established company within the chlorine dioxide industry, operating for over 65 years with manufacturing operations located in Rhode Island. Chlorine dioxide is used in municipal drinking water disinfection, cooling tower treatment, oil and gas fracturing, stimulation and odour control, rendering, paper machine slimicide, process water, wastewater treatment and food processing. The company also has a long standing relationship with Superior's Specialty Chemicals business, ERCO Worldwide.
About the Corporation
Superior consists of two primary operating businesses: Energy Distribution includes the distribution of propane and distillates, and supply portfolio management; and Specialty Chemicals includes the manufacture and sale of specialty chemicals.
For further information about Superior, please visit our website at: www.superiorplus.com.
Forward Looking Information
This press release may contain forward-looking statements. All forward-looking statements are based on our beliefs as well as assumptions based on information available at the time the assumption was made and on management's experience and perception of historical trends, current conditions and expected future developments, as well as other factors deemed appropriate in the circumstances. No assurance can be given that these assumptions and expectations will prove to be correct. Forward-looking statements are not facts, but only predications and can generally be identified by the use of statements that include phrases such as "anticipate", "believe", "continue", "could", "estimate", "foresee", "grow", "expect", "plan", "intend", "forecast", "future", "guidance", "may", "predict", "project", "should", "strategy", "target", "will" or similar expressions suggesting future outcomes. Forward looking statements in this press release include the expected closing date of, and accretion from, the acquisition of IDI.
Forward-looking information is not a guarantee of future performance and involves a number of risks and uncertainties some of which are described herein. Such forward-looking information necessarily involves known and unknown risks and uncertainties, which may cause Superior's actual results to differ materially from any projections of future results expressed or implied by such forward-looking information. These risks and uncertainties include risks related to the satisfaction of the conditions to closing of the Acquisition and performance of the businesses acquired pursuant to the Acquisition which are similar to the risks of Superior's existing Energy Distribution Business and operation risks related to Superior's other businesses including those identified in the Corporation's 2016 Annual Information Form under the heading "Risk Factors", which is available on the SEDAR website (www.sedar.com). Any forward-looking information is made as of the date hereof and, except as required by law, Superior does not undertake any obligation to publicly update or revise such information to reflect new information, subsequent or otherwise.