France-based UGI International, a liquified petroleum gas (LPG) distributor operating in 14 European countries, recently entered into a definitive agreement with Ireland-based energy company DCC plc to divest its LPG distribution businesses in Czech Republic, Hungary, Poland, and Slovakia for an enterprise value of approximately $55.8 million.
Net proceeds from the sale will be used to reduce UGI Corporation’s debt.
“This divestiture substantially completes UGI International’s previously announced portfolio optimization program, allowing us to sharpen our focus on the segments where we have the strongest competitive positions and growth opportunities,” Julie Fazio, UGI International president, said. “By concentrating on markets where we have scale, established supply infrastructure and strong customer relationships, we are positioning UGI International for sustainable value creation.”
The transaction is expected to close during the first half of the year subject to customary closing conditions.
UGI International is a subsidiary of King of Prussia-based UGI Corporation. It sold approximately 820 million gallons of LPG last year to a European customer base consisting of primarily residential, commercial, industrial, agricultural, wholesale and automobile fuel customers.
UGI Corporation is an energy products and services distributor and marketer in the United States and Europe. Its subsidiaries provide electric generation and distribution, midstream services, renewable natural gas generation, natural gas transmission and distribution, and propane distribution.