5th Jan 2021 09:12
(Alliance News) - DCC PLC on Tuesday announced it has completed the acquisition of United Propane Gas, which will go towards expanding its presence in the US liquefied petroleum gas market.
The FTSE 100 Irish support services firm said the United Propane Gas acquisition is its biggest one since entering the US LPG market back in 2018. With the material bolt-on acquisitions of NES Group in September 2020, Pacific Coast Energy in April 2019 and the recent smaller bolt-on acquisition completed in Colorado, the combined enterprise value of the transactions was USD145 million, which was paid from its cash resources.
Based in Kentucky, US, UPG markets, sells and delivers LPG and related products and services to residential, agricultural and commercial customers in 13 midwest and southern states, with a particularly strong presence in Kentucky, Tennessee and Alabama.
Chief Executive Donal Murphy said: "The acquisition of UPG is another exciting development for DCC and is consistent with our ambition to build a substantial presence in the global LPG market. Building a business of scale in the US LPG market provides DCC with a strong platform to provide our customers with their energy needs now and into the future. Following the acquisition of UPG, we have a business of real scale with a presence in 21 states, employing over 800 people and serving the energy needs of over 230,000 customers."
Shares in DCC were up 1.4% at 5,414.00 pence in London on Tuesday.
By Zoe Wickens; [email protected]
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