DCC to acquire Gaz Europeen

DCC, the Ireland based holding company, agreed to acquire Gaz Europeen in France through its subsidiary DCC Energy to expand its business there.

DCC said November 14 it has agreed to acquire 97% of the share capital of Gaz Europeen for €110mn ($118.5mn). According to a filing to stock exchange, DCC has developed a presence in natural gas organically in selected geographies, as natural gas markets have been deregulated in recent years.

Gaz Europeen will be DCC Energy's first major acquisition in natural gas and will complement Butagaz's leading position in LPG, according to the statement. The acqusition will help to penetrate France gas market, it said. "The acquisition of Gaz Europeen will significantly accelerate our development in France," said DCC CEO Tommy Breen.

The acqusition marks DCC's first substantial acquisition in the natural gas sector and a major development for the Butagaz LPG business acquired during 2015. The combination of Butagaz's marketing and brand strength and Gaz Europeen's expertise in the natural gas market will provide an excellent platform for growth in the French natural gas market, according to the statement. 

Gaz Europeen generated revenue of €205mn and operating profit of €15.7mn in 2015.

Murat Basboga