In a bold strategic move, DCC Energy, the energy arm of Irish powerhouse DCC PLC, has announced its intention to acquire Progas, a leading German distributor of liquefied petroleum gas (LPG), for a whopping €160 million ($172 million) in cash. This significant acquisition aims to propel DCC Energy into the forefront of the European energy market.
Anticipated Closing by March 31, 2024
The deal, disclosed on Tuesday, awaits approval from European competition regulators, the specific authorities remaining undisclosed by DCC Energy. The company envisions finalizing the acquisition by March 31, 2024, marking the culmination of DCC’s financial year.
Energy Biz To Buy Progas For €160M : Donal Murphy’s Vision
Donal Murphy, CEO of DCC, expressed enthusiasm about the proposed purchase, emphasizing its potential to foster expansion within Germany. The focus extends to various energy forms, including traditional gas, renewable liquefied petroleum gas (LPG), and solar energy. The move aligns with DCC’s commitment to diversifying its energy portfolio.
Progas: A Powerhouse in LPG Distribution
Progas, a major player in the German energy landscape, annually distributes approximately 330 million liters of LPG through its extensive nationwide network. Boasting a workforce of around 350 employees, Progas specializes in the distribution of hydrocarbon gases, such as propane, propylene, butylene, isobutane, and n-butane. These gases find applications in heating, cooking, and as a fuel for vehicles.
Maintaining Leadership in Dortmund
As part of the acquisition terms, the management of Progas will retain their roles at the company’s headquarters in Dortmund, ensuring continuity in leadership and operational efficiency.
DCC’s Largest German Endeavor
If approved, the acquisition of Progas will mark DCC Energy’s most significant venture in Germany to date. The deal is poised to add over 100,000 customers to DCC’s growing business portfolio, reinforcing its position as a major player in the German energy sector.
Energy Biz To Buy Progas For €160M : DCC PLC’s Vast Presence
DCC PLC, operating across energy, healthcare, and technology sectors, boasts a global presence with more than 16,000 employees in 22 countries. The acquisition of Progas aligns with the company’s overarching strategy of diversification and expansion into key European markets.
Energy Biz To Buy Progas For €160M : Market Response
Shares in DCC, listed on the FTSE 100 index of the London Stock Exchange, experienced a notable surge, trading at 5,136 pence ($63.2) at lunchtime on Tuesday, marking a 10% increase from Monday’s closing price of 4,666 pence.
Silence from Stakeholders
While DCC declined to provide further comments, Progas has not responded to requests for comment, leaving the industry and investors in anticipation of further developments