DCC, the fuel distribution-to-health services group, has completed the acquisition of Shell's LPG business in Hong Kong and Macau.
The deal, which was announced last April, marks DCC’s first major move into the Asian market. At the time, the deal was valued at £120 million.
The Shell LPG business is one of the leading LPG sales and marketing businesses in Hong Kong and Macau. It provides LPG in bulk, cylinder and autogas formats to domestic, commercial and industrial customers, and has been operating in the region for almost 60 years. In the year ended December 31st, 2016, it supplied around 74,000 tonnes of LPG to the market.
The business is expected to continue to operate under the Shell brand in both Hong Kong and Macau, with a long-term brand licence agreement in place.
Speaking in November, after the FTSE 100-listed firm reported interim operating profit up 14.4 per cent in the six months to the end of September, chief executive Donal Murphy said the firm was on course for a “record” year of spend on acquisitions, as analysts predict it could have a further £700 million to deploy.
Mr Murphy would not directly endorse Davy’s prediction of its acquisitions warchest, but he confirmed it has “plenty of capital” and is looking to buy up other LPG operators in the US, as well as also hunting acquisitions for its healthcare and technology divisions.
