PADUCAH, Ky. — Irish listed conglomerate DCC has completed the acquisition of United Propane Gas (UPG), materially expanding its presence in the US liquefied petroleum gas (LPG) market.
The deal is DCC’s largest acquisition in LPG since entering the US fuel market in April 2018.
Together with a recent smaller bolt-on acquisition completed in Colorado, the combined enterprise value of the transactions was $145 million (€118 million), the company said.
The consideration was paid in cash on completion from DCC’s own resources. The acquisitions will be earnings enhancing from completion and the after-tax cash payback will be about nine years.
UPG markets sell and deliver LPG and related products and services to residential, agricultural, and commercial customers in 13 midwest and southern states, with a strong presence in Kentucky, Tennessee, and Alabama.