Canadian propane and distillates distributor Superior Plus has bought a footprint in the California propane distribution market with the acquisition of the Kamps portfolio for $240m.
The portfolio includes Kamps Propane, High Country Propane, Pick Up Propane, Kiva Energy, Competitive Capital, and Propane Construction and Meter Services.
Kamps is an established independent family owned and operated retail and wholesale propane distributor based in California servicing approximately 45,000 residential, commercial, and wholesale customers. Kamps has 14 retail branch offices, five company-operated rail terminals, over 375 vehicles and approximately 280 employees.
“We are very pleased to enter into this transaction which expands our US propane distribution business in California,” said Luc Desjardins, Superior’s president and CEO. “The acquisition of Kamps is our sixth acquisition in 2021 and moves us further towards the Superior Way Forward acquisition target of $1.9bn. The acquisition of Kamps also establishes a large operating platform in the Western US and California to continue making accretive acquisitions and generating synergies.”
During 2020, Kamps earned approximately $27m in pre-tax earnings. On a normalized basis, including the achievement of expected synergies and weather consistent with the five-year average, Superior said it expects Kamps to generate around $34m in pre-tax earnings on a run-rate basis 24 months following the close of the acquisition.
For more information visit: www.superiorplus.com
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