DCC LPG to expand further in Europe with acquisition of TEGA in Germany
DCC plc, the leading international sales, marketing and support services group, announces that DCC LPG has reached agreement with Linde AG to acquire Tega-Technische Gase und Gasetechnik GmbH, its LPG and refrigerant gas distribution business in Germany.
The transaction is expected to complete before the end of DCC's financial year ending 31 March 2018, following receipt of customary regulatory consents.
TEGA, headquartered in Würzburg, employs approximately 100 people across five operating sites, largely in southern Germany. Tega has revenue of c. €75 million evenly split between LPG and refrigerants. The business supplies c. 35,000 tonnes of LPG annually to c. 15,000 domestic and commercial customers. It also supplies refrigerant gases to wholesalers and end-users for use in air-conditioning, commercial cooling systems and refrigerators. The business has operated on a standalone basis within The Linde Group and will continue to be led, post-completion, by its existing, highly experienced management team.
The consideration for the transaction will be payable in cash on completion. Following the completion of the acquisition of TEGA and based on acquisition activity to date, DCC will have spent approximately £630 million on acquisitions in the financial year ending 31 March 2018.
Donal Murphy, Chief Executive of DCC plc, said today:
"The acquisition of TEGA will provide DCC LPG with a platform in the large, relatively fragmented German LPG market and further strengthens its position in the LPG market in Europe. In addition, the acquisition of TEGA provides an entry into the refrigerant gas market further enhancing the service capability of our business, following our expansion into medical and aerosol gases in recent years. We very much look forward to welcoming the TEGA management and employees into the DCC Group."