DCC enters German liquid gas market in £80m move
Diversified distribution, sales and marketing group DCC is thought to be paying up to £80m to enter the German LPG market as it continues its geographic expansion.
DCC, which owns the Emo oil brand and LPG brand Flogas, is acquiring Tega-Technische Gase und Gasetechnik (TEGA), a unit of Linde. The business operates five sites, mostly in southern Germany.
Although DCC didn't reveal the acquisition price, it said the cash purchase would increase the group's total acquisition expenditure to £630m so far in the current financial year.
DCC said TEGA, which is headquartered in Wurzburg, employs about 100 people and generates annual revenue of around £67m. That revenue is evenly split between LPG and refrigerants.
TEGA supplies about 35,000 tonnes of LPG every year to 15,000 domestic and commercial customers. It supplies refrigerant for use in air-conditioning, commercial cooling systems and refrigerators.
DCC chief executive Donal Murphy said the acquisition will provide the group's LPG business with a platform in the German LPG market and further strengthens the group's presence in the wider European market. "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," he added.