DCC expands with pair of bolt-on acquisitions

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Fuels distributor DCC PLC (LON:DCC) has expanded its LPG/propane business with a pair of transactions that have a combined value of around GBP60mln.

The FTSE 100-listed group’s American division is growing through the acquisition of NES Group, a seller and distributor of propane in Connecticut, Rhode Island and Massachusetts.

Elsewhere, the other transaction is for Primagaz, a LPG seller in the Benelux region.

READ: Barclays questions DCC’s growth prospects

“I am pleased to announce two complementary acquisitions in our LPG division,” Donal Murphy, DCC chief executive said in a statement.

“NES Group provides DCC LPG with an entry point in the attractive New England region and clearly adds further scale to our growing US LPG business. The acquisition of Primagaz in the Netherlands will be an important addition to our European activities.”

Murphy added: “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.”

NES Group has 70 employees, more than 22,000 active customers and sales of around 40,000 tonnes per year. The transaction means that DCC now has operations across 14 states in the US and is well-positioned to continue to grow.

Primagaz, meanwhile, sells around 28,000 tonnes of bulk and cylinder LPG to a customer base of around 10,000.

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