REG - DCC PLC - Acquisition of Progas GmbH

DCCAnnouncement

14/11/2023 07:15

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RNS Number : 3004T  DCC PLC  14 November 2023

14 November 2023
 
Acquisition of Progas GmbH

DCC plc, the leading international sales, marketing, and support services
group, announces that DCC Energy has agreed to acquire Progas GmbH ("Progas"),
a leading distributor of LPG in Germany, subject to customary regulatory
approval. The transaction will represent DCC Energy's largest acquisition to
date in Germany and considerably expands DCC Energy's customer base in Germany
to over 100,000 customers.

Progas, founded in 1949, is a leading distributor of LPG in Germany serving a
loyal customer base of over 70,000 domestic and commercial customers. Progas
distributes the equivalent of approximately 330 million litres of LPG annually
via its nationwide supply (including two importation terminals), filling and
distribution network and employs approximately 350 people. Its experienced
management team will continue to lead the business from its headquarters in
Dortmund, Germany.

Following closing, the acquisition of Progas will advance DCC Energy's
strategy, as outlined in the Energy 'Insights Day' on 6 September, to grow its
LPG offering by 50% to 2030. DCC Energy will continue to extend its footprint
through synergistic acquisitions.

LPG plays a key role in DCC Energy's Cleaner Energy in Your Power strategy as
a lower carbon energy solution than traditional fuels for customers. The
acquisition scales DCC Energy's presence in Germany and creates a platform to
cross-sell DCC Energy's growing Energy Management Services capability into the
German market.

The acquisition is based on an enterprise value of approximately €160
million (£140 million) on a cash-free, debt-free basis and the consideration
will be settled in cash on completion. The acquisition is expected to generate
a mid-teen return on capital employed in the first year of ownership. The
transaction is subject to customary regulatory approval and is expected to
complete by the end of the financial year.

Donal Murphy, Chief Executive of DCC plc, said today:

"We look forward to welcoming Progas into the DCC Group - scaling DCC Energy's
position in Europe's largest energy market. It creates a leading platform for
DCC Energy in Germany to develop a multi-energy offering, aiming to address
the energy "trilemma" for our German customers.

The acquisition of Progas will enable DCC to accelerate the growth of
our Energy Solutions business in Germany focusing on LPG, renewable LPG,
solar, and additional energy management services, where DCC can become the
trusted cleaner energy partner to every customer".

Contact information
 Investor enquiries:

 Kevin Lucey, Chief Financial Officer           Tel: +353 1 2799 400
 Rossa White, Head of Group Investor Relations  Email: investorrelations@dcc.ie
 Media enquiries:
 Powerscourt (Eavan Gannon/Pete Lambie)         Tel: +44 20 7250 1446
                                                Email: DCC@powerscourt-group.com

 

 

About DCC plc

DCC plc is a leading international sales, marketing and support services
group. We provide solutions the world needs across three transformative
sectors: energy, healthcare and technology; where we acquire, improve and grow
diverse businesses. We bring our growth mindset to our businesses in 22
countries across four continents, empowering our 16,000 employees to create
long term value - for our shareholders, customers, society and the planet.

Headquartered in Dublin, DCC plc is listed on the London Stock Exchange and is
a constituent of the FTSE 100. In our financial year ended 31 March 2023, DCC
generated revenues of £22.2 billion and adjusted operating profit of £655.7
million. DCC has an excellent record, delivering compound annual growth of 14%
in adjusted operating profit and generating an average return on capital
employed of approximately 19% over 29 years as a public company.

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