DCC acquires UK LPG distribution business for £29m
Diversified distribution, sales and marketing group DCC has agreed to buy a liquefied petroleum gas (LPG) distribution business in Britain for £28.75m (€32.5m).
The LPG business is being acquired from Countrywide Farmers.
The business supplies bulk and cylinder LPG to domestic, agricultural and commercial customers in Britain, where it sells approximately 20,000 tonnes of LPG annually.
Earlier this month DCC announced that it had acquired German company Tega-Technische Gase und Gasetechnik (TEGA), a unit of Linde, as it continues its geographic expansion.
DCC is thought to be paying up to €90m to enter the German LPG market.
TEGA, which is headquartered in Wurzburg, employs about 100 people and generates annual revenue of around €75m.
Davy Stockbrokers, which estimated that DCC has paid between £75m and £80m (€78.5m and €89.7m) for TEGA, said that the deal will give the Irish company about a 2.2pc share of the German LPG market.
DCC has also established a significant presence in the LPG market in France in recent years.
The Dublin-listed company has also just completed its acquisition of Shell's LPG business in Hong Kong and Macau.