DCC plc has agreed to acquire two liquid gas businesses from UGI International, pushing forward with its strategy to focus on its energy division following a series of divestments.
The Dublin-based company will purchase FLAGA GmbH, a liquid gas distributor in Austria, for an enterprise value of approximately 55 million euros (47.5 million British Pounds), and has also acquired the AvantiGas liquid gas cylinder business in the UK.
The acquisitions come after DCC sold its healthcare and technology divisions to concentrate its resources on growth in the energy sector.
The company said the FLAGA deal marks its entry into the Austrian liquid gas market, where it already has a liquid fuels business.
FLAGA distributes around 45 million litres of liquid gas annually to over 15,000 customers, and DCC expects the deal to generate a mid-teen return on capital employed in the first year.
"These acquisitions are an important step in DCC's strategy to be the leading energy solutions provider in our chosen markets," Chief Executive Donal Murphy said in a statement.
"We are committed to expanding our liquid gas business in both new and existing geographies."
The FLAGA transaction is subject to regulatory approval and is expected to close by the end of DCC's financial year, the company said.
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