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DCC continues expansion of LPG business
Posted on Thursday, 11 January 2018 10:38
Dublin-headquartered DCC will acquire agricultural products retailer Countrywide Farmers’ liquefied petroleum gas (LPG) business for GBP 28.75 million in cash.
Completion is expected before the 31st March 2018.
The distribution, sales and marketing group has 10,000 employees working across the firm’s four divisions: LPG, retail and oil, healthcare, and technology.
Its LPG unit sells about 20,000 tonnes of the gas in the UK each year, making it number two in the market.
The division reported revenue of GBP 502.00 million for the six months ending 30th September 2017, accounting for 7.8 per cent of the net sales posted by the group during the period (GBP 6.45 billion).
LPG offers an alternative to connecting to the mains gas supply and can be used as automotive fuel and for heating and cooking processes.
London Stock Exchange-listed DCC sells and markets the gas across eight European countries and has recently expanded into the US with the USD 200.00 million purchase of Retail West from NGL Energy Partners in November 2017.
It has further increased its reach by buying Shell’s Hong Kong and Macau operations, and the trade and assets of Linde’s Germany-based Tega-Technische Gase und Gasetechnik.
Founded in 1902, Countrywide Farmers claims to be the leading supplier of products and services to the rural community.
The target is listed on auction-based market Asset Match but trading of its shares has been suspended since October 2017 as part of its ongoing strategic development plan, which included the offloading of its retail business to Mole Valley Farmers.
Although Countrywide Farmers is yet to release results for 2017, it reported a loss of GBP 10.25 million on revenue of GBP 134.26 million for the year ending 30th November 2016.
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