Support services company DCC has expanded into Germany when purchasing a gas company, passing on a platform in exactly what is a large but fragmented market.
The organization has bought Tega-Technische Gase und Gasetechnik, a liquid oil gas (LPG) and refrigerant gas distribution business which fits across southern Germany.
Tega didn’t disclose the quantity that FTSE 100 company DCC compensated for that business, however the German company has a yearly revenue close to €75m (£66.8m).
It’s headquartered in Würzburg and employs roughly 100 people across five operating sites. The gas company supplies around 35,000 tonnes of LPG yearly to fifteen,000 domestic and commercial customers, as well as sells refrigerant gases to wholesalers and companies to be used in air-conditioning, commercial cooling systems and refrigerators.
The company has operated on the standalone basis within German chemical company the Linde Group and will still be brought by its existing management team.
The transaction is anticipated to accomplish before DCC’s financial year ends on March 31.
DCC grows its business by obtaining other smaller sized players, as well as in recent several weeks has moved into markets where it’s not formerly were built with a presence.
In November, the organization joined the LPG market in america the very first time using the £152m purchase of Retail West, which operates service stations across 10 states within the Midwest and North West.
Once the Tega acquisition completes, DCC may have spent around £630m on acquisitions in the present financial year.
Donal Murphy, leader of DCC, stated: “The purchase of Tega will give you DCC LPG having a platform within the large, relatively fragmented German LPG market and additional strengthens its position within the LPG market in Europe.”
He stated the purchase of Tega also gave the company an entry in to the refrigerant gas market, expanding its service capacity, after it’d formerly expanded into “medical and aerosol gases” recently.
Shares in DCC were up around .47pc at lunchtime on Thursday.