DCC PLC (LSE:DCC) will buy Netherlands-based PVO International BV, a leading distributor of solar panels, invertors, batteries and accessories used in the commercial, industrial and domestic energy sectors across continental Europe.
The acquisition, together with the recent buy of Protech, will further increase DCC Energy's capability in and contribution from renewable energies and services, the company said in a statement.
It said the consideration for PVO, which was not disclosed, is mostly payable in cash on completion, followed by earn-out payments over three years based on PVO's future trading.
The Dutch company generated revenue of around €190mln in its most recent financial year. It will continue to be led by its existing management team.
“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,” commented Donal Murphy, chief executive of DCC.
“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.”
DCC said it has committed £80mln in acquiring renewable energies and services businesses since May. The acquisitions are expected to generate a return on capital employed of 13% from completion, rising to mid-teens within two years.