DCC Energy has agreed to a recommended all-cash takeover by a consortium led by Energy Capital Partners (ECP) and KKR in a deal valuing the energy distribution company at approximately £5.75 billion ($7.7 billion), as private equity investors deepen their interest in energy infrastructure assets.
Under the terms of the agreement, shareholders will receive 6,525 pence per share in cash, plus the previously declared final dividend of 147.22 pence per share, for a total value of 6,672.22 pence per share. Shareholders could receive up to an additional 125 pence per share if DCC completes the sale of its Nexora technology business above specified thresholds before a long-stop date, lifting the maximum offer value to 6,797.22 pence per share.
The base offer and dividend represent a 24% premium to DCC Energy’s undisturbed closing share price and value the company’s equity at around £5.75 billion. The board unanimously recommended the transaction, saying it provides shareholders with an attractive opportunity to realize value in cash despite confidence in the company’s long-term growth strategy.
DCC Energy said it has made substantial progress since launching its strategy in 2022 to simplify the business and focus exclusively on energy. The company has already divested its healthcare and InfoTech divisions and is pursuing the sale of its remaining technology business. However, directors said achieving the next phase of growth would require continued execution, acquisitions and navigating an uncertain macroeconomic, regulatory and energy transition environment.
For ECP and KKR, the acquisition expands already significant investments in energy infrastructure. ECP specializes in energy transition infrastructure and counts Grain LNG among its UK holdings, while KKR has invested billions of dollars in energy infrastructure globally, including power generation, LNG and energy services businesses.
DCC Energy distributes fuels and multi-energy solutions across Europe and the United States, serving millions of commercial, industrial and residential customers. The company generated £15.4 billion in revenue and £634 million in adjusted operating profit in the fiscal year ended March 31, 2026.
The acquisition will be implemented through an Irish scheme of arrangement, subject to shareholder approval, court sanction and customary regulatory conditions. The companies expect the transaction to complete in the first quarter of 2027.
By Charles Kennedy for Oilprice.com
