By The Canadian Press

CALGARY - Superior Plus Corp. (TSX;SPB), Canada's largest propane marketer, says one of its subsidiaries has agreed to acquire the retail heating oil, propane and motor fuels distribution business of U.S.-based Griffith Energy Services Inc. for US$76 million in cash.

The Calgary company, which reported a solid profit but falling sales, said Wednesday the acquisition is expected to close in December.

Griffith, with about 250 employees, operates in Connecticut, Pennsylvania and Rhode Island and overlaps Superior's current operations in several areas.

"We are very pleased to enter into this transaction to expand our refined fuel distribution and energy services business in the northeastern United States as part of Superior's growth strategy," Superior chairman and CEO Grant Billing said in a release.

"GES's business operations in Connecticut, Pennsylvania and Rhode Island are an excellent strategic fit and are complementary to the Sunoco assets Superior purchased on Sept. 30. In addition to increasing residential and commercial heating oil, propane and motor fuel products and services, the distribution network is expected to create additional synergies as Superior integrates the two acquisitions."

In its earnings report, Superior said it had net profits of $33 million for the third quarter, compared to a net loss of $203.9 million in the prior year quarter. Earnings were impacted by $33.9 million in unrealized gains on financial instruments, reversing unrealized losses of $232.7 million in the same period last year.

Third-quarter revenues fell to $441.3 million from $580.2 million.

The company also lowered its forecast for adjusted operating cash flow per share to between $1.90 and $2.05 in 2009, about 10 per cent below the $2.18 per share in 2008.

"The length of the global recession has made forecasting the recovery of the businesses difficult," said Billing. "Superior has responded swiftly to capitalize on acquisition opportunities given its strong balance sheet and operational expertise at a low point in the economic cycle. Given the recent improvement in a number of leading indicators in each of the businesses, we believe the third quarter of 2009 is the bottom of one of the most severe economic downturns in the past century. We remain committed to stability of dividends and creating value growth for our shareholders."

Besides its energy services business, Superior also makes and sells specialty chemicals and operates a construction products distribution business.