Superior Plus moves a step Closer

           Superior Plus has been a relatively slow growing company for the last three years.Before that it did invest a significant amount in it's specialty chemical division.This was after it took a significant write-off in it's chemical division.Since then it has been steady as it goes.This quarter was another in the series of slow-growth quarters.But Superior Plus (in late2015) came up with another strategy; it put an offer in to acquire Canexus another small chemical producer.Canexus seemed to take a loss on it's rail transhipment operation and needed some help.Superior Plus came along at the right time and it's offer was accepted.See Blogdaleupsome of September11,2015 for details click here for details of Sept.11 2015 blog.
    Operational Details of this quarter
   Superior Plus  has three divisions and they produce chiefly propane, sodium chlorate,hydrochloric acid and some construction products.Of the three divisions Energy, Specialty chemicals and Constuction Products -Specialty Chemicals took a small loss and Constuction Products had a small gain.Energy was a pretty constant
operator.Overall EBITDA was about 1 to 2 % less than in 2015.The Canadian dollar had a negative impact on profits.All specialty chemicals had a reduction in sales and profits including Sodium Chlorate, Hydrochloric Acid,and Chlor-Alkali.Construction product revenues were higher chiefly because of gypsum and insulation.Superior Plus expects that it will meet its annual guidance.
    SPB has worked hard to get its debt down to reasonable levels and has succeeded as debt to EBITDA IS 3.4X which is consistent with December31,2015 levels.And it may drop at yearend to 3.1X ;this does not count the acquisition of Canexus which is on track for yearend.SPB has already made an equity issue of $138 million part of which will be used to finance the acquisition. click here for details of equity issueSuperior also took a $9 million charge for the acquisition this quarter.Canexus has just reported and its results look healthy but flat from 2015.Still this should not dramatically affect the proposed acquisition use Blogdaleupsome for info.on the acquisition ;click here for analysis of SPB