DCC Buys Tega from Linde
Irish sales, marketing and support services group DCC has agreed to buy Tega-Technische Gase und Gasetechnik, Linde’s German LPG and refrigerant gas distribution business. Financial details were not disclosed.
Tega supplies around 35,000 t/y of LPG to some 15,000 domestic and commercial customers. The Würzburg-headquartered group also supplies gases to wholesalers and end-users for air conditioning, commercial cooling systems and refrigerators. Annual revenues are approximately €75 million, evenly split between LPG and refrigerants.
The company, which operates as a standalone business within Linde, has about 100 employees working across five sites mostly located in southern Germany.
Commenting on the deal, Donal Murphy, CEO of DCC, said: “The acquisition of Tega will provide DCC LPG with a platform in the large, relatively fragmented German LPG market and further strengthens its position in the LPG market in Europe. In addition, the acquisition of Tega provides an entry into the refrigerant gas market further enhancing the service capability of our business, following our expansion into medical and aerosol gases in recent years.”
The transaction is expected to complete before Mar. 31, 2018, following regulatory approval. Post-completion, the business will continue to be led by its existing management team.
Including the Tega deal, DCC said it will have spent roughly £630 million on acquisitions in the current financial year ending Mar. 31.
Last November, DCC agreed to buy NGL Energy Partner’s Retail West LPG division, marking its entry into the US market. This deal is also expected to close by Mar. 31. The Dublin-headquartered group said its aim is to be a global leader in the sales and marketing of LPG.
