Our stories

Entering the French LPG market – Acquisition of Butagaz

DCC’s largest ever acquisition (2015): Butagaz, a French-based LPG business selling to domestic, commercial, agricultural and industrial customers.

Entering the French LPG market – Acquisition of Butagaz

DCC LPG’s acquisition of Butagaz in 2015 represented DCC’s largest ever acquisition. Butagaz is a French based LPG business selling to domestic, commercial, agricultural and industrial customers. Butagaz is headquartered in Western Paris and employs approximately 550 people across France. The business has a strong supply base, sourcing LPG from a number of supply points including two large importation terminals. Butagaz transports product by road, rail, sea and pipeline to a well-invested network of ten bulk depots and five filling plants across France and one filling plant in Corsica.

The business sells to circa 250,000 residential and commercial customers who are supplied by bulk LPG tanks installed and managed by Butagaz at the customer’s premises. Butagaz also sells LPG in cylinders to circa 4 million end users through 26,000 retail outlets, including hypermarkets and independent retailers. These in turn are supplied by Butagaz’s national network of 46 cylinder depots.

Butagaz provides DCC LPG with a substantial presence in the French LPG market and an experienced and ambitious management team with a track record of delivering strong profit growth through a high quality sales, marketing and operating infrastructure. The French LPG market is the second largest in Western Europe and is approximately twice the size of the market in Britain. Butagaz has a market share of circa 25% and the Butagaz brand is the leading gas brand in France.

The acquisition of Butagaz represents a significant step forward in DCC LPG’s ambition to build a very significant presence in the global LPG market. As the leading LPG brand in France with a strong heritage and reputation for customer service, Butagaz is an excellent strategic fit for our existing LPG business.

Creating and sustaining market leading positions in DCC Health & Beauty

DCC Healthcare’s contract manufacturing business has delivered strong growth, focusing on providing a full service offering that delivers proactive product development.

Creating and sustaining market leading positions in DCC Health & Beauty

DCC Healthcare’s contract manufacturing business has delivered a strong track record of growth through our focus on providing customers with a full service offering that delivers, in particular, proactive product development. Market insights identified an opportunity to extend the breadth and capability of DCC Healthcare’s offering to include sachet filling for nutritional, beauty and healthcare brand owners.

In 2015, DCC Healthcare completed the acquisition of Design Plus, the UK’s leading manufacturer and filler of sachets. This acquisition provided DCC Healthcare’s contract manufacturing business with new skills and capability along with access to new customers and new geographic markets. Design Plus provides a range of contract manufacturing and filling solutions for their customers – they formulate, develop and pack product for international health and beauty brand owners as well as supporting their customers on branding and packaging formats.

Sachets as a delivery format have moved from predominantly being a sampling tool (used in magazines and promotional giveaways), to being a niche saleable delivery format offering convenience, portion control and better margins for brand owners. ‘Life on the go’ lifestyles fit perfectly with the delivery of a wide variety of products in a single use sachet. Design Plus’s manufacturing flexibility allows it to provide cost-effective solutions for both lower volume products, concept launch requirements and higher volume mass market capability for established ranges.

The acquisition of Design Plus has allowed DCC Healthcare to further enhance our service offering and has strengthened our position as the leading contract manufacturer in the creams and liquids sector in Britain. This enhanced capability has allowed us to both strengthen relationships with existing customers and attract new customers. In addition, Design Plus’s existing customer base has provided DCC Healthcare with access to customers in new geographic markets, including North America.

The development of Exertis’ Smart Technology proposition

Exertis has market-leading positions in computing, networking, mobile and AV – focused on developing Smart Technology and the Internet of Things.

The development of Exertis’ Smart Technology proposition

Exertis has market leading positions in a number of key areas including computing, networking, mobile and AV and the business is increasingly focused on developing areas including Smart Technology and the Internet of Things. Gartner, an independent technology research company, is predicting significant growth in the Smart Technology category and estimating that the average home could have hundreds of smart devices by 2022. The Smart Technology proposition includes products such as smart thermostats/meters, lighting, security alarms, TVs, security cameras, smart kitchen appliances and robots, to allow consumers to benefit from the development of a wide range of devices to make their lives easier throughout the home.

Recently, Exertis signed up a number of new vendors in the Smart Technology space, including Canary, Hive, Nest Labs and Tile. Exertis is now the number one Smart Technology distributor in the UK and sells to retailers and installers throughout the UK, Ireland and Continental Europe. The strength of the Exertis vendor portfolio in these areas has allowed Exertis to present an entire category solution to retailers and resellers. Given its leading position with key retailers and the developing installer channel, Exertis has become the obvious choice for new Smart Technology vendors looking to access the European market.

Consolidating in Denmark

DCC Retail & Oil entered the Danish fuel market in 2009 through the acquisition of Shell’s oil distribution business.

Consolidating in Denmark

DCC Retail & Oil first entered the Danish fuel market in 2009 through the acquisition of Shell’s oil distribution business. The business comprised sales of approximately 250 million litres of heating oils and transports fuels to domestic and small commercial and industrial customers throughout Denmark. Since acquisition by DCC, the business has expanded organically into natural gas, lubricants and marine gas oil.

In 2015, DCC Retail & Oil agreed to combine its Danish business with the energy distribution activities of DLG, the leading Danish agricultural business. The transaction resulted in DCC Retail & Oil owning 60% of the enlarged entity which distributes approximately 400 million litres of oil together with a broad range of other energy products.

This combination has resulted in the business becoming more balanced from a sectoral perspective, with 47% from the agricultural sector, 32% from the commercial/industrial sector and 21% from the residential sector. It also enabled us to generate synergies from the operating infrastructure and to increase our direct sales capability with access to the 29,000 co-operative members of DLG.

In 2016, DCC Retail & Oil acquired Shell’s commercial, aviation and retail fuels business in Denmark, ‘Dansk Fuels’. This business has added incremental volumes of approximately 0.9 billion litres.

Our operations in Denmark, in partnership with DLG, will now comprise 1.3 billion litres of fuel across a broad spectrum of customers including domestic, agricultural, commercial, industrial, marine, aviation, natural gas and lubricants in combination with a 205 site Shell branded retail network and a strong euroShell fuel card customer base. From a modest initial investment in 2009, DCC will now have Danish operations which are expected to generate operating profits of approximately £20 million and a return on capital employed in excess of 20%, both on a pro-forma basis.

Growing our own brand in DCC Vital

Growing company-owned brands in the pharmaceutical and medical device areas is a key strategic objective of DCC Healthcare.

Growing our own brand in DCC Vital

Growing the scale and breadth of company owned brands in the pharmaceutical and medical device areas is a key strategic objective of DCC Healthcare. Controlling the intellectual property (‘IP’) in the products it sells provides DCC Healthcare with greater long-term sustainability. Our own brand development is focused on niche market segments where we can build material market share through offering improved clinical benefits. In some cases, such as beta lactam antibiotics, we will manufacture the products in our own facilities, however, more often, due to scale of opportunity, market size, technology or manufacturing capability, we may decide to partner with specialist high quality contract manufacturers.

In 2015, DCC Healthcare acquired Espiner Medical, a product focused business that develops and manufactures a range of specialist tissue retrieval bags for use in laparoscopic surgical procedures. The business was founded by a leading laparoscopic surgeon and a materials specialist, who were able to bring together insights into a surgeon’s clinical needs and the most appropriate raw materials to use. Espiner Medical’s products all use a unique woven nylon fabric which is strong, light, leak-proof and not easily ripped – ideal for use in laparoscopic surgical procedures. The products have a strong following among surgeons in Britain and initial distribution channels have been established in international markets. We believe that there is significant scope for accelerated sales growth under our ownership.

Expanding Exertis’ service offering in mobile

Exertis won a contract with a major Irish network operator to provide fulfilment services for mobile handsets for stores and customers.

Expanding Exertis’ service offering in mobile

Exertis successfully tendered for and won a contract with a major Irish network operator to provide fulfilment services for mobile handsets for stores and customers. This will see Exertis develop a significant end-to-end relationship with the Irish network operator and will act as an excellent reference for Exertis’ credentials in the mobile space throughout Europe but especially in the UK and Ireland.

This business was won primarily through demonstrating our supply chain skills, our strong relationships with key mobile handset vendors and the value we create through our integrated distribution and supply chain offerings, helping our supplier and customer partners to grow. We expect to work with this network operator to expand the combined service offering, including development of opportunities in related areas such as Smart Technology category management and accessories supply.