21st Sep 2020 10:00
(Alliance News) - DCC PLC on Monday said it has expanded its US liquefied petroleum gas business through the acquisition of the NES Group Ltd, and that it has also reached agreement with SHV Energy NV to acquire its Dutch LPG business Primagaz Nederland BV.
Connecticut-headquartered NES Group markets, sells and delivers propane and related products and services to residential and commercial customers in Connecticut, Rhode Island and Massachusetts.
The FTSE 100 Irish support services firm said NES Group provides DCC LPG with an entry point in the New England region and adds further scale to its growing US LPG business, noting that the acquisition will provide a platform for further development in a region with a strong underlying demand for propane. DCC LPG now has operations across 14 US sates.
In the Netherlands, DCC will buy Primagaz from SHV Energy. It said the acquisition of Primagaz will be an important addition to its European activities, saying the business is "highly complementary" to DCC LPG's existing business in the Benelux region. Primagaz supplies over 28,000 tonnes of liquefied petroleum gas each year. The transaction is expected to complete during the fourth quarter of financial 2021, which ended March 31.
The combined enterprise value of the two transactions is around GBP60 million.
"These transactions, which were originated, diligenced and executed during a period of ongoing Covid-19 restrictions, demonstrate our ability to successfully build our business in an uncertain environment. The group continues to have the platforms, opportunities and capability for further development across each of our four divisions," said DCC Chief Executive Donal Murphy.
Shares in DCC were trading 1.6% lower at 6,300.00 pence each on Monday in London.
By Ife Taiwo; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
DCC