Shareholders in DCC Energy have approved a more than £5.7bn takeover by private equity firms KKR and Energy Capital Partners (ECP), according to Private Equity Wire. The transaction received support from 78.1% of shareholders voting at a special meeting on Friday, according to DCC. Completion is expected during the first quarter of 2027, subject to the remaining conditions of the deal.
Shareholder vote and timetable
The shareholder approval cleared what Private Equity Wire described as a key hurdle for one of the UK’s longest-running private equity-led M&A processes this year, according to Private Equity Wire. DCC chairman Mark Breuer said the transaction would provide shareholders with an opportunity to realise value from their investment.
Buyer group and public-markets implications
The acquirers are private equity firms KKR and Energy Capital Partners (ECP), according to Private Equity Wire. DCC is a Dublin-headquartered company that distributes fuel and gas across Europe and the US. Private Equity Wire reported that the acquisition by KKR and ECP will take one of the remaining Irish-founded companies listed on the UK’s FTSE 100 out of public markets.
Extended bidding process and investor reservations
Private Equity Wire reported that the transaction follows an extended bidding process between DCC and the private equity consortium. Bid deadlines were extended four times in just over a month before the parties reached an agreement, according to the publication.
DCC said in June that it was prepared to accept a takeover proposal, according to Private Equity Wire. Some of DCC’s largest shareholders subsequently raised concerns about the price offered by KKR and ECP, the publication reported. Aviva and Fidelity International were among institutional investors that expressed reservations over the proposed valuation, according to Private Equity Wire.
Despite those reservations, Private Equity Wire reported that shareholder approval gives KKR and ECP a clear path towards completing the acquisition and taking DCC private. Completion remains subject to the remaining conditions of the deal, with timing expected during the first quarter of 2027.
DCC’s recent portfolio positioning
Private Equity Wire reported that DCC has spent recent years reshaping its portfolio around energy. In 2022, the group announced plans to concentrate on its energy operations and targeted a doubling of operating profit to £830m by 2030, according to the publication.
