United Propane Gas (UPG) has been snapped up in what will be DCC LPG’s fourth addition in the sector in the past two years, “materially expanding its presence”, the FTSE 100-listed company said in a statement on Tuesday.
UPG will expand the division’s presence from 14 to 21 states and will almost double its customer base to over 230,000 customers.
DCC Propane is now the sixth-largest business in the US LPG market, with the Irish group having bought Pacific Coast Energy in April 2019, NES Group in September 2020 and a smaller bolt-on acquisition recent completed in Colorado.
The company said the combined enterprise value of its latest pair of transactions was US$145mln, paid in cash, with the expectation that the additions will enhance earnings from completion.
DCC chief executive Donal Murphy noted that the group has spent US$445mln on acquisitions in the US sector since 2018.
“Building a business of scale in the US LPG market provides DCC with a strong platform to provide our customers with their energy needs now and into the future,” he said in a statement.
Murphy added that the opportunity for further expansion “remains significant”.