Certarus provides a "virtual pipeline" for the distribution of CNG, RNG and hydrogen. [Image credit: Certarus]

By Dale Lunan

Superior Plus, a major North American distributor of propane and distillates, said December 22 it had entered into a definitive arrangement to acquire Certarus, which distributes compressed natural gas (CNG), renewable natural gas (RNG) and hydrogen, for C$1.05bn (US$770mn) in cash and shares.

Superior Plus will acquire all of the outstanding common shares of Certarus, representing an equity value of C$853mn, and assume Certarus’ senior bank credit and leases, together valued at about C$196mn.

“The acquisition of Certarus is a highly strategic and transformative transaction for Superior as it represents an opportunity for significant organic growth and provides our existing and new customers with the ability to meet their ESG goals through our low carbon energy distribution platform,” Superior CEO Luc Desjardins said.

Certarus is a growing North American distributor of over-the-road low carbon fuels, including CNG, RNG and hydrogen. Through the use of mobile storage units – which can carry each of the low-carbon gases – Certarus has the flexibility to deliver low cost and low-carbon intensity energy alternatives to its customers across North America as they transition away from diesel and other distillate fuels.

“Certarus will benefit from Superior’s scale, portable fuel distribution expertise, and a shared commitment to safety,” Certarus CEO Curtis Philippon said. “The joining of our businesses creates a strong platform upon which we can continue to grow and provide decarbonisation solutions, including RNG and hydrogen.”

The acquisition is expected to close in Q1 2023, subject to regulatory and Certarus shareholder approvals. On closing, Certarus shareholders will hold an approximate 17% equity interest in Superior Plus.