Harris Williams & Co. is pleased to announce that Sunoco, Inc.
(NYSE:SUN) has signed a definitive agreement to sell certain assets of its retail heating oil and propane distribution
business (Sunoco Retail Heat), to strategic buyer Superior Plus Corp. (TSX:SPB). The transaction, expected to close
in September 2009, is being executed by Harris Williams & Co. and led by Mike Hogan and Derek Lewis along with
Brian Lucas from the firm's Energy & Power Group.
Sunoco Retail Heat is a leading full-service regional distributor of a broad range of liquid fuels and propane gas
serving markets in Pennsylvania and New York, with a distribution network that includes the operation of two
pipeline-supplied fuel terminals and 22 retail bulk plants providing up to 20 million gallons of storage capacity in its
core markets. In 2008, Sunoco Retail Heat delivered approximately 160 million gallons of heating oil, gasoline,
diesel fuel, kerosene and propane to a diversified customer base of 97,000 residential and commercial customers
including residential homeowners, agriculture and construction companies, municipalities and schools. Sunoco
Retail Heat's management team has demonstrated significant growth both organically and through acquisitions by
completing 37 transactions since 1999 while successfully managing through various economic cycles.
"We think this is a terrific transaction for both parties, and look forward to watching the continued growth of the
business as Superior expands its fuel distribution platform into the United States and continues to drive the
consolidation of the North American heating oil and propane distribution market," said Mike Hogan, managing
director at Harris Williams & Co. "The highly fragmented fuel terminal and storage space and downstream
wholesale, commercial and retail fuel distribution and marketing segments continue to garner strong interest from
both strategic buyers and private equity investors driven by the need to expand and increase the efficiency of the
North American energy infrastructure and distribution systems."
The sale of Sunoco Retail Heat to Superior Plus represents a longstanding pattern of activity in the sector. In 2008,
Harris Williams & Co. represented Farm & Home Oil in its sale to strategic buyer Buckeye Partners. The
transaction continues to demonstrate the leadership of Harris Williams & Co.'s Energy & Power Group with
companies that provide products, services and technologies that support or enhance the overall energy and power
infrastructure.
Sunoco, Inc. (www.sunocoinc.com), headquartered in Philadelphia, Pennsylvania, is a leading manufacturer and
marketer of petroleum and petrochemical products. With 825,000 barrels per day of refining capacity, approximately
4,700 retail sites selling gasoline and convenience items, approximately 6,000 miles of crude oil and refined product
owned and operated pipelines and 43 product terminals, Sunoco is one of the largest independent refiner-marketers
in the United States. Sunoco is a significant manufacturer of petrochemicals with an annual production capacity of
approximately five billion pounds, largely chemical intermediates used to make fibers, plastics, film and resins.
Utilizing a unique, patented technology, Sunoco's cokemaking facilities in the United States have the capacity to
manufacture approximately 3.0 million tons annually of high-quality metallurgical-grade coke for use in the steel
industry. Sunoco also is the operator of, and has an equity interest in, a 1.7 million tons-per-year cokemaking facility
in Vitoria, Brazil.
Superior Plus Corp. (www.superiorplus.ca) is a diversified corporation. Superior holds 100% of Superior Plus LP, a
limited partnership formed between Superior General Partner Inc., as general partner and Superior as limited partner.
Superior Plus is focused on stability of dividends with value growth and has four Canadian based operating
businesses: Superior Propane is Canada's largest distributor of propane and related products and services; ERCO
Worldwide is a leading supplier of chemicals and technology to the pulp and paper industries and a regional
Midwest supplier of chloralkali and potassium products; Winroc is a leading distributor of walls and ceilings
construction products in North America; and Superior Energy Management provides fixed-price natural gas supply
services in Ontario, Quebec, and British Columbia along with fixed-price electricity supply services in Ontario. |
