|Date Announced:||February 13, 2017|
|Date Closed:||April 03, 2017|
|Deal Value:||C$412,000,000 and US$314,800,000|
|Client Name:||Gibson Energy|
The sale will be completed through a series of transactions. Pursuant to an option purchase agreement, dated February 13, 2017, subject to the fulfilment of customary conditions, Gibson and Superior are obligated to complete the initial transaction pursuant to which Superior pays non-refundable cash consideration of C$412 million and Gibson grants an irrevocable to Superior to acquire 100% of the partnership units and shares of the Canwest and Stittco businesses.
The cash payment of C$412 million is expected to be received by Gibson, concurrent with the granting of the Option, no later than April 3, 2017. Following granting of the Option by Gibson, closing risk transfers to Superior. Upon exercise of the Option by Superior, and receipt of regulatory approvals, the Securities will be transferred to Superior for nominal consideration.
Gibson will continue to operate the business under the direction of the current management team, with no disruption to its employee base and customer service levels, until the final closing of the divestiture, which is expected to occur no later than the fourth quarter of 2017.
As part of the sale, Superior has agreed to five-year wholesale supply and truck transportation agreements that offer Gibson an ability to continue procuring propane volumes for Canwest and Stittco and provide bulk delivery rights to the associated branch distribution locations.