Superior Plus to acquire United Pacific Energy in major propane expansion

TAGS

Superior Plus, a leading energy distribution and specialty chemicals company, has announced its agreement to acquire 100% of United Liquid Gas Company, which operates under the name United Pacific Energy (UPE). This acquisition marks a significant step in Superior Plus’ ongoing strategy to expand its wholesale business across North America. UPE, a prominent wholesale distributor of propane and , is based in California and has a well-established presence in the region, particularly in serving retail propane distribution companies. The deal, which has not disclosed its financial terms, will allow Superior Plus to broaden its footprint in the competitive U.S. propane market.

Superior Plus’ Strategic Acquisition: Expanding U.S. Wholesale Propane Market Reach

Superior Plus’ acquisition of United Pacific Energy comes after its recent purchase of NGL Propane, a retail propane business, from NGL Energy Partners in July. The company’s continued acquisitions signal a focused strategy to increase its U.S. wholesale propane market share. By acquiring UPE, Superior Plus gains not only a significant physical infrastructure—through its rail terminals and other facilities—but also a more diversified customer base. UPE’s stronghold in California, one of the most significant propane markets in the United States, makes this acquisition a strategic and highly valuable addition to Superior Plus’ portfolio.

United Pacific Energy operates four key rail terminals located in Fairfield, Anderson, Bakersfield, and Rancho Cucamonga, with a combined capacity to store nearly 9.8 million litres of natural gas liquids. These rail terminals will enable Superior Plus to enhance its logistical capabilities across California, ensuring a more efficient and reliable propane supply for customers. In addition to the terminals, UPE also operates a refinery in Martinez and a gas plant in Los Angeles, further strengthening its position as a critical player in the U.S. energy distribution market.

See also  LTIMindtree teams up with Aflac Incorporated to harness AWS cloud

Understanding the Growth Potential: Why This Acquisition Matters

The acquisition of United Pacific Energy aligns with Superior Plus’ long-term business strategy and commitment to expanding its wholesale propane operations across North America. According to , President and CEO of Superior Plus, the acquisition of UPE is part of the company’s “Evolution 2020” objective to pursue opportunistic acquisitions that drive growth in its wholesale propane business. Desjardins emphasized that this acquisition is a step towards achieving the company’s goal of expanding its presence in the U.S. market, particularly in the high-demand propane distribution sector.

This acquisition represents Superior Plus’ fifth acquisition in 2018 and is part of the company’s broader strategy to increase its footprint and diversify its customer base. By acquiring UPE, Superior Plus not only increases its volume but also enhances its operational efficiency, particularly in terms of storage capacity and rail terminal infrastructure. The company’s ability to serve a larger customer base through UPE’s facilities will be crucial as it works to meet the growing demand for propane in the U.S., particularly in California.

Expert Insights: What This Acquisition Means for the U.S. Propane Market

, Senior Vice President of Superior Plus Supply Portfolio Management, remarked on the strategic value of United Pacific Energy’s assets, stating that the acquisition will diversify Superior Plus’ customer base and geographical presence. Vammen explained that UPE’s long-standing reputation and experience in the California marketplace, having served propane customers for over 20 years, adds significant value to Superior Plus’ existing portfolio. The acquisition also positions Superior Plus to better serve the growing demand for propane in the western U.S.

See also  Ginkgo Bioworks to acquire fungal platform firm Dutch DNA Biotech

The move also positions Superior Plus to leverage UPE’s coastal presence, which plays a vital role in the company’s continued expansion along the West Coast. As propane continues to be an essential energy source for residential, commercial, and industrial uses, Superior Plus’ strategic investments in rail terminals, storage capacity, and refinery facilities will support its long-term growth in this segment.

In addition, the deal represents a major step in Superior Plus’ broader plan to increase its focus on the wholesale propane market. The company has made it clear that its vision is to grow its footprint across North America, and this acquisition is just one part of that larger plan. By adding United Pacific Energy’s assets, Superior Plus is not just increasing its storage capacity or diversifying its operations but also securing a competitive edge in a key market that is seeing strong demand for propane.

The Competitive Landscape: How Superior Plus Stands Out in the Propane Industry

The propane industry in the U.S. remains highly competitive, with numerous players vying for market share. However, the combination of Superior Plus’ infrastructure and UPE’s established presence in California places the company in a strong position to compete with other propane distributors in the region. This acquisition not only gives Superior Plus a more robust market share but also enhances its ability to serve key customers more efficiently through expanded storage and logistical capabilities.

California’s growing demand for propane, driven by factors such as its diverse industrial base and the shift towards more sustainable energy sources, is a key consideration in this acquisition. Propane plays an essential role in various sectors, including agriculture, heating, and transportation, and with the California market poised for further growth, Superior Plus’ strategic expansion will help the company better serve these industries.

See also  Unichem Laboratories gets FDA approval for Amitriptyline HCl Tablets generic

By leveraging UPE’s assets, Superior Plus can enhance its logistical operations, improving the delivery of propane and butane across the region. This operational efficiency will be critical as the company seeks to grow its market share and establish itself as a leader in the wholesale propane distribution sector.

A Step Toward Long-Term Growth and Market Leadership

Superior Plus’ acquisition of United Pacific Energy represents a bold and strategic move to strengthen its presence in the U.S. wholesale propane market. By acquiring UPE’s rail terminals, storage capacity, refinery, and customer base, Superior Plus positions itself for sustained growth in one of the most significant propane markets in North America. As the company continues to pursue its Evolution 2020 objectives and expand its footprint through strategic acquisitions, this deal underscores its commitment to building a robust and competitive portfolio of propane distribution assets.

This acquisition is more than just a business transaction; it’s a clear signal of Superior Plus’ long-term vision to lead the U.S. propane industry through increased market share, expanded infrastructure, and operational efficiencies. By continuing to expand strategically, Superior Plus is poised to become a dominant force in the wholesale propane market, with the United Pacific Energy acquisition playing a pivotal role in that trajectory.


Discover more from Business-News-Today.com

Subscribe to get the latest posts sent to your email.

CATEGORIES
TAGS
Share This