Superior Plus Corp has acquired Canexus Corporation - the Canada-based producer of sodium chlorate and chlor-alkali products – at an enterprise value of $ 932 million. The combination will enhance Superior Plus’ specialty chemicals business by combining the technical strengths of both companies, including bleaching services and chlorine dioxide generator technical services.
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper, water treatment and oil and gas industries. It has four plants in Canada and two at one site in Brazil.
Both Canexus and Superior have a solid operational track record and a presence within the North American and South American chemicals market. Together, the combined companies will be more efficient and productive. Both corporations have identified opportunities for the combined business to reduce costs by realising significant synergies through increased scale, reduced overhead and greater efficiencies. The combined entity will also have greater operational flexibility and a stronger balance sheet to provide improved optionality for future growth through expansion.
“The Board of Directors believes Canexus shareholders are offered the greatest opportunity to recognise the long-term value inherent in Canexus’ assets through a better capitalised combined company, with improved economies of scale, cost synergies and stronger balance sheet. By combining the assets and expertise of two well managed organisations, we are creating a strategic entity that will be better positioned to compete, to manage risk and to leverage growth opportunities to create shareholder value,” stated Hugh Fergusson, chair of the Board of Directors of Canexus.
