LONDON: DCC plc, the leading international sales, marketing and support services group, announced the DCC Energy has completed the sale of a majority stake in its liquid gas business in Hong Kong & Macau to CITADEL Pacific Ltd (CPL).

CPL is an Asian industrial group with an existing and complementary business in the region.

The transaction values DCC’s business at an initial enterprise value of c.US$150 million (c.£117 million), on a debt-free, cash-free basis. DCC received US$105 million (c.£82 million) in cash consideration on completion, with the balance of consideration represented by a retained minority stake in the combined operations.

In retaining a minority stake, DCC will benefit from the combination of the two businesses, which will operate under both the Shell and Exxon brands.

DCC has the option to divest its remaining stake under an agreed mechanism after a number of years.

In the financial year ended 31 March 2024, DCC’s business in Hong Kong & Macau distributed the equivalent of 183 million litres of liquid gas and recorded an operating profit of US$19.5 (£15.6 million).

The business generated a return on capital employed of 11.7%1. The transaction is expected to result in a modest exceptional profit in the year ended 31 March 2025.

The business represented approximately 2% of DCC’s operating profit in the year ended 31 March 2024.

DCC Energy has significant growth opportunities across its business in Europe and North America.

The transaction sharpens the strategic and regional focus of the division in line with our Cleaner Energy in Your Power strategy.

Donal Murphy, Chief Executive of DCC plc, said today: “We are pleased to announce the sale of a majority stake in our business in Hong Kong & Macau. I would really like to thank our talented team in the region who have built a very strong business. Their commitment and passion in serving customers and driving performance has been exceptional throughout our ownership. We look forward to partnering with CPL to further develop our combined operations.

The disposal brings further strategic and geographic focus to DCC Energy as we implement our Cleaner Energy in Your Power strategy. We outlined the progress we have made towards our 2030 vision at our full year results presentation on 14 May last. We will continue to bring cleaner energy for customers across Europe and North America.”

DCC Energy has agreed to acquire Progas GmbH for €160 million