A few weeks ago, Superior Plus Corp (TSX: SPB) announced a very strong Q1, which came in well above consensus. In addition to the strong quarter, on May 30, 2018 SPB announced that they had entered into an agreement to acquire NGL Propane, LLC (NGL) for a total cash consideration of US$900 million. NGL sells propane and distillates to over 316,000 residential, commercial, and industrial customers in the Northeast US. Following the transaction, Superior Plus will be the 2nd largest retail propane distributor in North America. According to management, the merger will bring US$20-25 million dollars of synergies. Palos believes that management is being very conservative. With the acquisition, SPB will reach critical mass where they will become a price giver instead of price takers which should translate to lower costs of goods sold and higher margins.