DCC, the fuel distribution-to-technology services group, said on Tuesday it had agreed to buy PVO International, a Netherlands-based distributor of solar panels, inverters, batteries and accessories for an undisclosed sum.
PVO’s products are used in the commercial, industrial and domestic energy sectors across continental Europe. The company was founded in 2014, employs about 50 people, and generated €190 million in revenues in its most recent financial year, according to DCC.
Dublin-based, but London-listed DCC said the deal brought the amount the conglomerate had committed to buying renewable energies and services businesses since it reported full-year results in mid-May to £80 million (€89.8 million).
The deal, while small, is part of a drive by DCC, led by chief executive Donal Murphy, to move the conglomerate from generating about two-thirds of its profits from energy to one where up to 75 per cent of earnings will come from healthcare, technology and clean energy and renewable activities by the end of the decade.
The business also plans to double its operating profits over the period from £589.2 million reported in the year to last March. In addition, DCC plans to cut carbon emissions from its energy business to net zero by 2050.
“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,” Mr Murphy said.
“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.”
The majority of the consideration for PVO was payable in cash on completion, followed by earn-out payments over three years based on PVO’s future trading, DCC said.
The acquisition of PVO is subject to competition authority approval in the Netherlands, Germany, Austria and Poland and is expected to complete by the end of December.