REG - DCC PLC - DCC acquires leading European solar distributor

DCCAnnouncement

27/09/2022 07:00

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RNS Number : 7082A  DCC PLC  27 September 2022

27 September 2022

 

DCC acquires leading European solar and clean energy technology distributor

 

DCC plc, the leading international sales, marketing, and support services
group, announces that it has agreed to acquire PVO International BV ("PVO"), a
leading distributor of solar panels, invertors, batteries and accessories used
in the commercial, industrial and domestic energy sectors across continental
Europe.

 

PVO was established in 2014 and has grown rapidly to become one of the leading
solar solutions suppliers in Europe, with a market-leading position in the
Benelux, and growing positions in eight other European countries including
Germany, Poland and Finland. PVO sells solar panels and associated products
such as invertors, batteries and mounting materials to its B2B customer base
of installers, developers, corporates and EPCs (Engineering, Procurement and
Construction companies). PVO partners with many of the leading manufacturers
in the sector.

 

The business is headquartered in Rosmalen, the Netherlands, and employs
approximately 50 people. PVO's existing, experienced, management team will
continue to lead the business. They have led PVO's growth since its
foundation. PVO generated revenue of approximately €190 million in its most
recent financial year.

 

PVO is an excellent strategic fit for DCC. It will leverage PVO's established
market position in the fast-growing solar PV market and DCC Energy's knowledge
and experience in transitioning customers to cleaner energy products and
services including solar solutions. DCC also has extensive experience and
capability in the closely related technology products supply chain. In its
recent "Leading with Energy" event in May 2022, DCC outlined its strategy to
accelerate the net zero journey of its customers by leading the sales,
marketing and distribution of low carbon energy solutions. In its last
financial year, approximately 20% of DCC Energy's operating profit derived
from services and renewables. This acquisition, together with the recent
acquisition of Protech, will further increase DCC Energy's capability in and
contribution from renewable energies and services.

 

In the period since DCC's results announcement in May 2022 and including the
acquisition of PVO, Protech and other smaller acquisitions, DCC has now
committed c.£80 million in acquiring renewable energies and services
businesses. The majority of the consideration for PVO is payable in cash on
completion, followed by earn out payments over three years based on PVO's
future trading. The above acquisitions in renewable energies and services are
anticipated to generate a return on capital employed of 13% from completion,
rising to mid-teens within two years. The acquisition of PVO is subject to
competition authority approval in the Netherlands, Germany, Austria and Poland
and is expected to complete by the end of the calendar year.

 

 

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

 

"A key part of DCC Energy's strategy in accelerating the net zero journey of
our customers is to build a strong position in the sales, marketing and
distribution of renewable energy products and services. We have already made
good progress in recent years and PVO provides an excellent platform to build
a pan-European business in the distribution of solar PV and associated
products, such as energy storage and EV chargers. We are delighted to welcome
the PVO team into the DCC Group and look forward to supporting their continued
growth and development into the future."

 

 

 

 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/Genevieve Ryan)      Tel: +44 20 7250 1446
                                                Email: DCC@powerscourt-group.com

 

 

About DCC plc

DCC is a leading international sales, marketing and support services group
with a clear focus on sustainable growth. DCC is an ambitious and
entrepreneurial business operating in 21 countries, supplying products and
services used by millions of people every day. Building strong routes to
market, driving for results, focusing on cash conversion and generating
superior sustainable returns on capital employed enable the Group to reinvest
in its business, creating value for its stakeholders.

 

Headquartered in Dublin, the Group operates across three sectors: energy,
healthcare and technology, employing over 15,500 people. DCC plc is listed on
the London Stock Exchange and is a constituent of the FTSE 100. In its
financial year ended 31 March 2022, DCC generated revenue of £17.7 billion
and adjusted operating profit of £589.2 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 28 years as a public company.

 

Follow us on LinkedIn (https://www.linkedin.com/company/dcc-plc) , Twitter
(https://twitter.com/dccplc?s=20&t=Z_XyTAnFQUI0tdsX3k5nfA) .

www.dcc.ie (http://www.dcc.ie)

 

 

 

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