Canadian Manufacturing

Superior Plus to keep specialty chemicals business after strategic review

The company also announced that it was restarting its dividend reinvestment program

January 28, 2020  The Canadian Press

TORONTO — Superior Plus Corp. has decided to not sell its specialty chemicals business following a strategic review of the operations.

The company says the review involved an assessment and negotiation of formal offers for the business which operates under the trade name ERCO Worldwide.

It says the sales process attracted “considerable interest.” However, chief executive Luc Desjardins says the final bids did not meet its expectations and the company sees better value for shareholders in continuing to run the business.

Superior plans to continue to operate and invest in both its energy distribution and specialty chemicals businesses, growing organically and through strategic acquisitions.

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The company also announced that it was restarting its dividend reinvestment program that allows shareholders to increase their holdings in the company at a discount to the market price.

Shares in the company were down about 89 cents or about 7% at $11.79 in trading on the Toronto Stock Exchange.