Superior Plus (Toronto) has announced plans to acquire sodium chlorate and chlor-alkali maker Canexus (Calgary, AB) in a deal valued at C$932 million ($714 million) including debt.
Canexus shareholders will receive 0.153 of a Superior share, a value at announcement of approximately C$1.70/share. The implied price is a 47.6% premium to Canexus’s closing price on 5 October. The exchange ratio implies total equity value of $316 million and an enterprise value of $932 million, representing a multiple of 8.5 times Canexus’s last 12 months’ Ebitda, Superior says.
“The combination with Canexus will allow us to operate more efficiently,” says Luc Desjardins, CEO of Superior. “Canexus’s portfolio of sodium chlorate and chlor-alkali assets across the Americas will complement our Erco division, expand our production capacities, and position us to capture future growth opportunities. The marketplace is and will remain very competitive, and this is a combination of two Canadian companies which will … reduce costs while providing a global platform for growth.” Superior says it expects to generate cost savings of $35 million/year, expected to be fully realized within three years from the transaction’s close.
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper, water treatment, and oil and gas industries. The company has four plants in Canada and two at one site in Brazil. Superior Plus has a portfolio of diversified businesses, consisting of propane distribution, specialty chemicals, construction products distribution, and fixed-price energy services.
The acquisition is subject to approval of two thirds of the votes cast by Canexus shareholders. Canexus says in a statement that it entered into confidential discussions with a number of parties to sell the company or certain assets in response to inquiries received. “The transaction with Superior was determined to be in the best interests of Canexus and the most attractive option for the corporation and its stakeholders,” Canexus says.
By Jing Chen with Brian Balboa
Source: Chemical Week
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?