Business
DCC LPG makes first acquisition in US LPG market
DCC LPG makes first acquisition in US LPG market.
About this update from Dcc Plc
[{"type":"text","content":"\n \nRNS Number : 7555V DCC PLC 07 November 2017 \n\n \n \n7 November 2017\n \nDCC LPG makes first acquisition in large US LPG market\n \nDCC plc, the leading international sales, marketing and support services group, announces that DCC LPG has reached agreement with NGL Energy Partners LP (\"NGL\") to acquire its Retail West LPG division, Hicksgas LLC (\"Retail West\" or \"the business\"), based on an enterprise value of US$200 million (£152 million). \n \nThe acquisition represents DCC LPG's entry into the US market and is a further significant step in DCC's strategy to build a global LPG business over time. The US is one of the world's largest LPG markets and is an attractive and growing market. It is also highly fragmented, with over 4,000 LPG distribution businesses operating in the market. The acquisition of Retail West will provide DCC with a substantial, high-quality presence in the US with leading market positions in a number of states. The business has an excellent customer base, a strong and well-invested operational infrastructure and an experienced management team.\n \nThe transaction is expected to complete on 31 March 2018, following receipt of customary regulatory consents and separation from NGL.\n \nThe Retail West business\nHeadquartered in Illinois, Retail West has been in business for over 70 years and currently employs 390 people. It sells approximately 130,000 tonnes1 of LPG annually from 43 customer service locations and 58 satellite facilities. The business trades under three prominent regional brands, Hicksgas, Pacer Propane and Propane Central, and a number of smaller, local brands. Retail West has leading market positions in Illinois, Indiana and Kansas and also operates in seven other states across the Mid-West and North-West regions. \n \nThe business has a long-established and loyal base of 65,000 customers. Approximately two thirds of annual volume is sold to residential customers, predominantly for heating purposes, with the balance sold to commercial and agricultural customers in both small and large bulk format.\n \nRetail West has a well-invested asset base of approximately 100 bulk storage facilities and a company-owned distribution fleet of over 150 vehicles. Retail West also owns the majority of tanks on custome...