DCC Energy expands in Germany with €160m acquisition of Progas GmbH
DCC plc, a renowned international sales, marketing, and support services group, has announced a significant acquisition in the German energy sector. DCC Energy is set to acquire Progas GmbH, a leading LPG distributor in Germany, for an enterprise value of approximately €160 million (£140 million). This acquisition represents DCC Energy’s largest investment in Germany, significantly boosting its customer base to over 100,000.
Progas GmbH: A Pillar in the German LPG Market
Established in 1949, Progas has cemented its position as a major LPG distributor in Germany. It serves more than 70,000 domestic and commercial customers and handles about 330 million litres of LPG annually through its extensive supply network. With a team of around 350 employees, Progas’s experienced management will continue to lead the business from Dortmund, Germany.
Advancing DCC Energy’s Cleaner Energy Strategy
The acquisition aligns with DCC Energy’s strategic objectives outlined during the Energy ‘Insights Day’ on September 6. It aims to expand its LPG offerings by 50% by 2030 and strengthen its presence in the German market. LPG is a key component of DCC Energy’s ‘Cleaner Energy in Your Power’ strategy, offering a lower-carbon solution compared to traditional fuels.
DCC plc Announces Its Largest German Acquisition: Progas GmbH for €160 Million
Financial Details and Expected Outcomes
The cash-free, debt-free basis of the deal and the cash settlement upon completion mark a robust financial strategy for DCC. The acquisition is expected to yield a mid-teen return on capital employed in the first year, with the transaction completion anticipated by the end of the financial year, subject to customary regulatory approval.
Donal Murphy’s Vision for the Acquisition
Donal Murphy, Chief Executive of DCC plc, expressed enthusiasm about integrating Progas into DCC Group. He emphasized the acquisition’s potential to develop a multi-energy offering in Germany and address the energy “trilemma” for German customers. Murphy highlighted DCC’s focus on accelerating growth in energy solutions, including LPG, renewable LPG, solar, and additional energy management services.