DCC LPG to acquire TEGA in Germany
4 January 2018
DCC LPG to expand further in Europe with acquisition of TEGA in Germany
DCC plc, the leading international sales, marketing and support services group, announces that DCC LPG has reached agreement with Linde AG ("Linde") to acquire Tega-Technische Gase und Gasetechnik GmbH, its LPG and refrigerant gas distribution business in Germany ("TEGA" or "the business").
The transaction is expected to complete before the end of DCC's financial year ending 31 March 2018, following receipt of customary regulatory consents.
TEGA, headquartered in Würzburg, employs approximately 100 people across five operating sites, largely in southern Germany. Tega has revenue of c. €75 million evenly split between LPG and refrigerants. The business supplies c. 35,000 tonnes of LPG annually to c. 15,000 domestic and commercial customers. It also supplies refrigerant gases to wholesalers and end-users for use in air-conditioning, commercial cooling systems and refrigerators. The business has operated on a standalone basis within The Linde Group and will continue to be led, post-completion, by its existing, highly experienced management team.
The consideration for the transaction will be payable in cash on completion. Following the completion of the acquisition of TEGA and based on acquisition activity to date, DCC will have spent approximately £630 million on acquisitions in the financial year ending 31 March 2018.
Donal Murphy, Chief Executive of DCC plc, said today:
"The acquisition of TEGA will provide DCC LPG with a platform in the large, relatively fragmented German LPG market and further strengthens its position in the LPG market in Europe. In addition, the acquisition of TEGA provides an entry into the refrigerant gas market further enhancing the service capability of our business, following our expansion into medical and aerosol gases in recent years. We very much look forward to welcoming the TEGA management and employees into the DCC Group."
For Reference:
Donal Murphy, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Kevin Lucey, Head of Capital Markets
Telephone: +353 1 2799 400
Email: investorrelations@dcc.ie
Powerscourt (Media)
Lisa Kavanagh / Victoria Palmer-Moore
Telephone: +44 20 7250 1446
Email: DCC@powerscourtgroup.com
About DCC plc
DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth. It operates through four divisions: LPG, Retail & Oil, Healthcare and Technology.
DCC is an ambitious and entrepreneurial business operating in 15 countries, supplying products and services used by millions of people every day throughout Europe. 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, employing approximately 10,000 people, DCC's four divisions are:
· DCC LPG - a leading liquefied petroleum gas ("LPG") sales and marketing business in Europe, with a developing business in the retailing of natural gas and electricity;
· DCC Retail & Oil - a leader in the sales, marketing and retailing of transport fuels and commercial fuels, heating oils and related products and services in Europe;
· DCC Healthcare - a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners; and
· DCC Technology - a leading European sales, marketing and services partner for global technology brands.
DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2017, DCC generated revenue of £12.3 billion and operating profit of £345 million.
DCC has an excellent record, delivering compound annual growth of 14% in operating profit and generating an average return on capital employed of approximately 19% over 23 years as a public company.
About DCC LPG
DCC LPG is a leading liquefied petroleum gas ("LPG") sales and marketing business in Europe, with a developing business in the retailing of natural gas and electricity. DCC LPG currently operates in eight countries across Europe and Asia and has leading market positions in France, Britain, Ireland, Norway, Sweden, the Netherlands and Hong Kong & Macau. Following completion of the acquisitions of TEGA and Retail West (announced on 7 November), DCC LPG will also have substantial operations in the US and Germany.
This information is provided by RNS
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