Topic: How To Invest

Q: Hi Pat: I would appreciate TSI’s advice on Superior Plus Corp. Thank you.

Article Excerpt

A: Superior Plus Corp., $12.67, symbol SPB on Toronto (Shares outstanding: 142.8 million; Market cap: $1.8 billion; www.superiorplus.com), distributes propane in Canada and the U.S. It also produces and distributes specialty chemicals, including sodium chlorate and chlor-alkali, which are used for bleaching pulp (wood fibres). The company’s propane business operates under the Superior Propane name in Canada and Superior Plus Energy Services in the Northeastern U.S. The propane business accounts for 73% of the company’s revenue. Superior’s specialty chemicals business operates under the ERCO Worldwide name and has eight production facilities in North America and one in Chile. ERCO is the world’s second-largest producer of sodium chlorate. Those operations account for 27% of revenue. The company had a third business segment that distributed drywall and other construction materials. However, it sold that operation in August 2016 for $325 million U.S. to help pay down its debt. Superior is growing its business through acquisitions. In September 2017, the company acquired Canwest Propane for $432.4 million…