DCC plc (LON:DCC), the leading international sales, marketing, and support services group, has announced that it has agreed to acquire PVO International BV (“PVO”), a leading distributor of solar panels, invertors, batteries and accessories used in the commercial, industrial and domestic energy sectors across continental Europe.
PVO was established in 2014 and has grown rapidly to become one of the leading solar solutions suppliers in Europe, with a market-leading position in the Benelux, and growing positions in eight other European countries including Germany, Poland and Finland. PVO sells solar panels and associated products such as invertors, batteries and mounting materials to its B2B customer base of installers, developers, corporates and EPCs (Engineering, Procurement and Construction companies). PVO partners with many of the leading manufacturers in the sector.
The business is headquartered in Rosmalen, the Netherlands, and employs approximately 50 people. PVO’s existing, experienced, management team will continue to lead the business. They have led PVO’s growth since its foundation. PVO generated revenue of approximately €190 million in its most recent financial year.
PVO is an excellent strategic fit for DCC. It will leverage PVO’s established market position in the fast-growing solar PV market and DCC Energy’s knowledge and experience in transitioning customers to cleaner energy products and services including solar solutions. DCC also has extensive experience and capability in the closely related technology products supply chain. In its recent “Leading with Energy” event in May 2022, DCC outlined its strategy to accelerate the net zero journey of its customers by leading the sales, marketing and distribution of low carbon energy solutions. In its last financial year, approximately 20% of DCC Energy’s operating profit derived from services and renewables. This acquisition, together with the recent acquisition of Protech, will further increase DCC Energy’s capability in and contribution from renewable energies and services.
In the period since DCC’s results announcement in May 2022 and including the acquisition of PVO, Protech and other smaller acquisitions, DCC has now committed c.£80 million in acquiring renewable energies and services businesses. The majority of the consideration for PVO is payable in cash on completion, followed by earn out payments over three years based on PVO’s future trading. The above acquisitions in renewable energies and services are anticipated to generate a return on capital employed of 13% from completion, rising to mid-teens within two years. 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 the calendar year.
Donal Murphy, Chief Executive said today:
“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. 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. We are delighted to welcome the PVO team into the DCC Group and look forward to supporting their continued growth and development into the future.”