DCC Energy (LSE:DCC) has agreed to a recommended cash acquisition by Dragon Bidco, a vehicle owned by funds advised by Energy Capital Partners Management (ECP) and Kohlberg Kravis Roberts & Co (KKR).
The multi-energy sales and distribution group, which serves millions of commercial, industrial and domestic customers across Europe and the US, will be bought for a base consideration of 6,525p per share, valuing the company at approximately £5.75 billion.
Shareholders may receive an additional payment of up to 125p per share, contingent on proceeds from the planned sale of DCC Energy's Nexora technology business, which is currently undergoing a sales process but has no binding agreement in place.
The base consideration represents a 24% premium to DCC Energy's undisturbed closing price of 5,380p and a 36% premium to its twelve-month volume-weighted average price.
DCC Energy chair Mark Breuer said the board remains confident in the 2030 Ambition strategy set out in 2022, targeting operating profit of £830 million, but noted the company "has not sustainably re-rated in the public markets", making the consortium's offer a compelling route to crystallise value in cash.
KKR's Ryan Miller said the group intends to draw on its infrastructure platform to support DCC Energy's transition, while ECP's Francesco Ciabatti described the deal as the start of "a long-term partnership".
The transaction requires 75% shareholder approval at the scheme meeting, an EGM vote and High Court sanction, with meetings expected in September and the scheme targeted to become effective in the first quarter of 2027.
News Intelligence what this means for the company
KKR and Energy Capital Partners have agreed to take DCC Energy private in a £5.75bn cash deal at 6,525p per share—a 24% premium to the undisturbed closing price and 36% above the twelve-month volume-weighted average. The board backed the offer after the company failed to re-rate in public markets despite first-quarter trading ahead of prior year, though shareholders will not vote until September with completion targeted for Q1 2027.
The deal removes DCC Energy from public markets at a material premium, crystallizing value in cash rather than betting on the 2030 Ambition strategy (£830m operating profit target). Shareholders face a binary choice: accept 6,525p now plus a contingent 125p if the Nexora technology sale proceeds, or hold for potential upside if the company re-rates—a bet the board has implicitly rejected.
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