DCC PLC DCC acquires leading European solar distributor (7082A)
September 27 2022 - 2:00AM
UK Regulatory
TIDMDCC
RNS Number : 7082A
DCC PLC
27 September 2022
27 September 2022
DCC acquires leading European solar and clean energy technology
distributor
DCC plc, the leading international sales, marketing, and support
services group, announces that it has agreed to acquire PVO
International BV ("PVO"), a leading distributor of solar panels,
invertors, batteries and accessories used in the commercial,
industrial and domestic energy sectors across continental
Europe.
PVO was established in 2014 and has grown rapidly to become one
of the leading solar solutions suppliers in Europe, with a
market-leading position in the Benelux, and growing positions in
eight other European countries including Germany, Poland and
Finland. PVO sells solar panels and associated products such as
invertors, batteries and mounting materials to its B2B customer
base of installers, developers, corporates and EPCs (Engineering,
Procurement and Construction companies). PVO partners with many of
the leading manufacturers in the sector.
The business is headquartered in Rosmalen, the Netherlands, and
employs approximately 50 people. PVO's existing, experienced,
management team will continue to lead the business. They have led
PVO's growth since its foundation. PVO generated revenue of
approximately EUR190 million in its most recent financial year.
PVO is an excellent strategic fit for DCC. It will leverage
PVO's established market position in the fast-growing solar PV
market and DCC Energy's knowledge and experience in transitioning
customers to cleaner energy products and services including solar
solutions. DCC also has extensive experience and capability in the
closely related technology products supply chain. In its recent
"Leading with Energy" event in May 2022, DCC outlined its strategy
to accelerate the net zero journey of its customers by leading the
sales, marketing and distribution of low carbon energy solutions.
In its last financial year, approximately 20% of DCC Energy's
operating profit derived from services and renewables. This
acquisition, together with the recent acquisition of Protech, will
further increase DCC Energy's capability in and contribution from
renewable energies and services.
In the period since DCC's results announcement in May 2022 and
including the acquisition of PVO, Protech and other smaller
acquisitions, DCC has now committed c.GBP80 million in acquiring
renewable energies and services businesses. The majority of the
consideration for PVO is payable in cash on completion, followed by
earn out payments over three years based on PVO's future trading.
The above acquisitions in renewable energies and services are
anticipated to generate a return on capital employed of 13% from
completion, rising to mid-teens within two years. The acquisition
of PVO is subject to competition authority approval in the
Netherlands, Germany, Austria and Poland and is expected to
complete by the end of the calendar year.
Donal Murphy, Chief Executive of DCC plc, said today:
"A key part of DCC Energy's strategy in accelerating the net
zero journey of our customers is to build a strong position in the
sales, marketing and distribution of renewable energy products and
services. We have already made good progress in recent years and
PVO provides an excellent platform to build a pan-European business
in the distribution of solar PV and associated products, such as
energy storage and EV chargers. We are delighted to welcome the PVO
team into the DCC Group and look forward to supporting their
continued growth and development into the future."
Contact information
Investor enquiries:
Kevin Lucey, Chief Financial Officer Tel: +353 1 2799 400
Rossa White, Head of Group Investor Email: investorrelations@dcc.ie
Relations
Media enquiries:
Powerscourt (Eavan Gannon/Genevieve Tel: +44 20 7250 1446
Ryan)
Email: DCC@powerscourt-group.com
About DCC plc
DCC is a leading international sales, marketing and support
services group with a clear focus on sustainable growth. DCC is an
ambitious and entrepreneurial business operating in 21 countries,
supplying products and services used by millions of people every
day. Building strong routes to market, driving for results,
focusing on cash conversion and generating superior sustainable
returns on capital employed enable the Group to reinvest in its
business, creating value for its stakeholders.
Headquartered in Dublin, the Group operates across three
sectors: energy, healthcare and technology, employing over 15,500
people. DCC plc is listed on the London Stock Exchange and is a
constituent of the FTSE 100. In its financial year ended 31 March
2022, DCC generated revenue of GBP17.7 billion and adjusted
operating profit of GBP589.2 million.
DCC has an excellent record, delivering compound annual growth
of 14% in adjusted operating profit and generating an average
return on capital employed of approximately 19% over 28 years as a
public company.
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