TIDMDCC
RNS Number : 8893Y
DCC PLC
14 May 2019
14 May 2019
DCC Development Update
DCC plc, the leading international sales, marketing and support
services group, is issuing this Development Update and separately
today the Group has also announced its Preliminary Results for the
year ended 31 March 2019.
It has been another year of significant growth and development
for DCC, with total acquisition commitments in the last twelve
months of approximately GBP370 million. This includes GBP90 million
of new acquisitions being announced today. In addition, DCC has
also recently reached agreement with Shell Aviation to create a new
branded aviation marketing and distribution business in
Denmark.
DCC LPG
Pacific Coast Energy - US
In April 2019, DCC LPG acquired Pacific Coast Energy, an LPG
distribution business operating in the north-west of the US, based
on an enterprise value of GBP30 million. The business trades under
a number of brand names, including Pacific Coast Energy, Sunshine
Propane and Pioneer Propane. It has an established base of
residential and commercial customers which it services from five
well-located facilities in Washington and Oregon.
DCC LPG entered the US market for the first time in 2018 through
the acquisition of Retail West, which has a strong market position
in Kansas, Illinois and Indiana and a modest presence in seven
other states, including Washington and Oregon. The acquisition of
Pacific Coast Energy, DCC LPG's first material bolt-on acquisition
in the US market, will provide an enlarged presence in this
attractive regional market and is consistent with DCC's strategy to
develop a significant LPG business in the large and fragmented US
market.
DCC Retail & Oil
DCC Retail & Oil completed a number of small complementary
bolt-on acquisitions during the period, primarily in the lubricants
and retail sectors. These acquisitions have been successfully
integrated into the existing businesses.
Aviation - Denmark
In March 2019, DCC Retail & Oil's Danish business agreed to
create a new branded marketing and distribution aviation business
with Shell Aviation. The relationship will involve Shell Aviation
purchasing an interest in DCC's existing Danish aviation business,
which is already the largest supplier of aviation fuel in the
country. The relationship will combine DCC's local presence and
supply infrastructure with Shell's global expertise in aviation and
capabilities in jet fuel production and supply. The business will
supply national and international airlines with aviation fuel from
seven Danish airports. The transaction represents DCC's first
equity partnership with Shell.
DCC Technology
Comm-Tec - Germany
DCC Technology recently agreed to acquire Comm-Tec, a leading
value-added distributor of Pro AV and IT products to system
integrators and resellers across Germany, Austria, Switzerland,
Italy and Spain. The business recorded revenue of EUR90 million in
its most recent financial year and employs 150 people.
The acquisition of Comm-Tec represents a material extension of
DCC Technology's Pro AV offering in Europe and is consistent with
its strategy to extend the geographic footprint and product range
of its successful and growing Pro AV business, strengthening its
position with existing suppliers, while also broadening its base of
customers and suppliers.
Amacom - The Netherlands
In May 2019, DCC Technology agreed to acquire Amacom, a leading
distributor of consumer electronics, AV and IT products, primarily
to the retail and e-tail sectors in the Netherlands. The business
recorded revenue of EUR160 million in its most recent financial
year and employs approximately 80 people at two locations,
including a new warehouse facility that opened in 2018. The
business has grown successfully in recent years, enabled by its
strong operating and IT infrastructure.
The acquisition of Amacom is highly complementary to DCC
Technology's existing operations in Continental Europe. Amacom will
provide DCC Technology with an efficient distribution footprint in
the growing Dutch market and an attractive portfolio of product
categories and suppliers, leveraging the division's current
capabilities and providing opportunity for further growth in the
region.
The combined initial enterprise value of Amacom and Comm-Tec is
approximately GBP55 million and both acquisitions are subject to
customary regulatory approvals.
DCC has also completed a number of small bolt-on transactions
across each division in the period.
Donal Murphy, Chief Executive of DCC plc, said today:
"The acquisitions announced today are good examples of our
divisional strategies in action. DCC LPG's acquisition of Pacific
Coast Energy, our first material bolt-on in the US LPG market, will
strengthen our position in the north-west of the US, helping to
build further scale in that region. Similarly, the acquisition of
both Comm-Tec and Amacom significantly enhances our business in
Continental Europe and will strengthen our relationships with
suppliers and customers in the region.
The Group's market leading positions, increased geographic
presence and strong and liquid balance sheet provide DCC with the
platforms, opportunities and capabilities to build the Group into a
global leader in its chosen sectors."
For reference:
Donal Murphy, Chief Executive
Fergal O'Dwyer, Chief Financial Officer
Kevin Lucey, Head of Capital Markets
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
Powerscourt (Media)
Lisa Kavanagh / Victoria Palmer-Moore
Telephone: +44 20 7250 1446
Email: DCC@powerscourtgroup.com
About DCC plc
DCC is a leading international sales, marketing and support
services group with a clear focus on performance and growth. It
operates through four divisions: LPG, Retail & Oil, Technology
and Healthcare.
DCC is an ambitious and entrepreneurial business operating in 17
countries, supplying products and services used by millions of
people every day. Building strong routes to market, driving for
results, focusing on cash conversion and generating superior
sustainable returns on capital employed enable the Group to
reinvest in its business, creating value for its stakeholders.
Headquartered in Dublin, employing approximately 12,500 people,
DCC's four divisions are:
-- DCC LPG - a leading LPG sales and marketing business with
operations in Europe, the US and Asia and a developing business in
the retailing of natural gas and electricity;
-- DCC Retail & Oil - a leader in the sales, marketing and
retailing of transport fuels and commercial fuels, heating oils and
related products and services in Europe;
-- DCC Technology - is a leading route-to-market and supply
chain partner for global technology brands and customers; and
-- DCC Healthcare - a leading healthcare business, providing
products and services to healthcare providers and health and beauty
brand owners.
DCC plc is listed on the London Stock Exchange and is a
constituent of the FTSE 100. In its financial year ended 31 March
2019, DCC generated revenue of GBP15.2 billion and operating profit
of GBP460 million.
DCC has an excellent record, delivering compound annual growth
of 14% in operating profit and generating an average return on
capital employed of approximately 19% over 25 years as a public
company.
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END
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