PNC Exits Griffith
As oil prices steady, Superior Plus continues to build out its energy holdings.
January 21, 2010
PNC Equity Partners will exit its fuel oil, propane and gasoline company Griffith Energy Inc. in a $125 million sale to Superior Plus Corp.
The listed, Calgary, Canada-based Superior Plus will purchase the 500-employee energy company in a transaction that is expected to close this week.
PNC Equity partner Jack C. Glover led the transaction for the Pittsburgh, Pennsylvania-based buyout fund. In addition, PNC Equity vice president Justin L. Bertram worked on the transaction. In speaking with Mergers & Acquisitions, Glover noted the portfolio company’s Ebitda increased from $14 million to $28 million. The return on PNC Equity’s investment was over 4x, he said.
PNC Equity made its initial investment in November 2003, partnering alongside Griffith Energy’s management team to purchase the company from Energy East Corporation, a New Gloucester, Maine-based energy and electricity distributor. PNC Equity also partnered with Phil Saunders, a former owner of the business in purchasing Griffith Energy. Saunders has also exited the company, and Griffith Energy is now fully owned by Superior Plus.
PNC Equity made a series of add-on acquisitions during the peak in oil prices in 2008. The sharp spike “put the squeeze on” many smaller energy companies, Glover said. The buyout firm recapitalized Griffith Energy in May 2009 using capital committed from PNC Equity Partners II, L.P.
W.Y. Campbell & Company served as Griffith Energy’s financial advisor in the sale to Superior Plus.
As of Thursday afternoon, Superior Plus stock traded at $13.99 per share.
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