UGI Corp. announced that its wholly owned French subsidiary, UGI Bordeaux Holding, has reached agreement in principle to acquire Total's liquefied petroleum gas distribution business in France.
The price is approximately 400 to 450 million euros, or $540 million to $610 million, subject to legally required employee information and consultation procedures and regulatory approvals, UGI said in a news release.
Total’s French LPG business distributed more than 265 million retail gallons of LPG in 2013, serving residential, commercial, industrial and auto-gas customers. UGI International distributed approximately 600 million retail gallons of LPG throughout Europe in fiscal 2013, which included more than 250 million retail gallons of LPG by Antargaz in France.
As compared to Total’s French LPG business, Antargaz’ retail volumes comprise a higher percentage of sales to cylinder and small bulk customers, the release said. The transaction is subject to customary closing conditions and is expected to close during the first half of 2015. Other terms of the transaction were not disclosed.
“We look forward to adding Total’s French LPG business to our existing footprint in France, extending the reach of our business and expanding our residential and commercial customer base across all regions of the country," said John L. Walsh, president and CEO of UGI. "The acquisition of this high-quality business reaffirms our commitment to add value for our shareholders through profitable growth in Europe. We also look forward to welcoming the talented and dedicated team at Totalgaz to our UGI International organization. We expect the transaction, which will be funded through a combination of cash on hand and debt financing, to be accretive to EPS in the first full year, including the impact of typical transition expenses.”