MERGERS-ACQUISITIONS / Former Norcen Senior Executives and
Enterprise Capital Acquire Interests in Superior Propane
TSE SYMBOL: SPF.UN
MAY 28, 1998
CALGARY, ALBERTA--Peter Green, Chairman of Superior Propane Income
Fund (the "Fund"), announced today that a group of senior
executives of Superior Propane Inc. ("Superior") including Grant
Billing, Chairman and Chief Executive Officer, Geoff Mackey, Chief
Operating Officer, and Mark Schweitzer, Chief Financial Officer,
together with funds managed by Enterprise Capital Management Inc.
("Enterprise"), acquired the interests of Union Pacific Resources
Inc. ("UPRI") in Superior. The interests acquired represent a 10
percent ownership of Trust Units in the Fund, as well as UPRI's
rights under Management and Administrative Agreements. The
aggregate consideration paid was $68.3 million. As a result,
Superior is now wholly owned by the Fund and the investing group
with its approximate 10 percent interest will be the Fund's
largest unitholder.
Mr. Green, Chairman of the Fund, said that "this transaction is
very positive for the resolution of the ownership of the Fund and
consolidates our 100 percent ownership of Superior to participate
in Superior's future growth."
Mr. Billing, in commenting on the purchase, stated that he was
pleased that there would be continuity of management of Superior.
"Our first priority will be to ensure the continued favourable
progress of Superior. We also intend to seek suitable
acquisitions for Superior with the objective of increasing
distributions to unitholders over time. We will look to
appropriate areas both inside and outside of the propane industry
when we find opportunities which will provide reliable and
consistent cash flow."
Mr. Jim MacDonald, the Chairman of Enterprise Capital Management,
a Toronto based investment partnership, stated that "the new
objective for Superior is a natural and positive evolution of the
Income Fund structure. With Grant, Geoff and Mark we have a
highly capable and committed management team to carry out this
plan."
After giving effect to these transactions, the Fund has 45,742,731
Units outstanding. Trust Units and Trust Units represented by
installment receipts are listed on the Toronto Stock Exchange.
Superior Propane Inc. is Canada's largest distributor of propane
products and services with over 200,000 customers.
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