DCC jumps into the U.S. LPG market with $200m acquisition

Irish energy company DCC plc is tapping the U.S. growing liquid petroleum gas (LPG) market with the acquisition of Retail West LPG.

DCC plc has agreed with NGL Energy Partners the acquisition of its Retail West LPG division, Hicksgas LLC, based on an enterprise value of US$200 million.

The acquisition represents DCC LPG’s entry into the U.S. market and is a further significant step in DCC’s strategy to build a global LPG business over time.

Headquartered in Illinois, Retail West has been in business for over 70 years and currently employs 390 people. It sells approximately 130,000 tonnes of LPG annually from 43 customer service locations and 58 satellite facilities.

“Our LPG business has grown significantly in recent years and Retail West will give DCC a material platform for development in the large, fragmented and growing LPG market in the US,” said Donal Murphy, Chief Executive of DCC plc.

Retail West has an 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 customer premises.

Other than its LPG business, DDC is also a major player in the European fuel retailing business. DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100.