DCC Energy has acquired Progas, a German nationwide business founded in 1949, to grow its zero-carbon energy management business.
It would mark DCC’s biggest ever acquisition in Germany for around £140m. Once combined with TEGA, their existing business, the company starts with over 100,000 customers.
DCC Energy intend to make ‘Cleaner Energy in your Power’ come to life in Europe’s biggest energy management services market by bringing options to current and future German LPG customers such as solar, heat pump or hybrid heat pump. Furthermore, they will add many other recurring revenue services in time.
LPG emits less carbon than oil (-12% CO2e) or coal (-33% CO22e), though the company are working hard to do more by scaling up biogas across DCC Energy. They intend to be able to provide their German customers – not connected to the natural gas grid – the offer to replace LPG seamlessly with renewable equivalents in the future.
DCC Energy plan to grow LPG profits across Europe by £120m by 2030, of which they plan £70m to come from acquisitions. Their proposed acquisition of Progas will bring them closer to this target in the fragmented German market.
Most importantly following completion of the acquisition, the company would be welcoming 350 new colleagues from Progas into the Group, taking their people up towards 16,500.
Fabian Ziegler, CEO DCC Energy, said, “we have been looking for an opportunity for a long time to build a stronger base in Europe’s biggest energy market. I am thrilled that we found the ideal business in Progas to join DCC Energy. Expanding our German customer base to 100,000, we’ll now begin to scale our energy management solutions in a market of 41m households. We can’t wait to get started.”
Source: DCC
