UGI International, a subsidiary of UGI Corporation, has entered into a definitive agreement to sell its liquid petroleum gas (LPG) distribution operations in the Czech Republic, Hungary, Poland, and Slovakia to DCC plc for an enterprise value of approximately €48 million (about $52 million). The transaction is expected to close in the first half of 2026, subject to customary closing conditions.
The sale is part of UGI International’s ongoing portfolio‑optimization program, which began with the divestiture of its Austrian LPG business to DCC for €55 million in October 2025. By shedding these non‑core European assets, UGI International is sharpening its focus on the North American market, where it operates regulated natural‑gas utilities, midstream infrastructure, and AmeriGas retail propane. The consolidation is intended to streamline operations and free capital for higher‑return opportunities.
Proceeds from the €48 million transaction will be used by UGI Corporation to reduce net debt and strengthen its balance sheet. The company has set a target of a net debt‑to‑EBITDA ratio in the mid‑3× range by fiscal year 2026, and the sale is expected to bring the ratio closer to that goal. The divestiture also addresses the conglomerate discount that has historically weighed on UGI’s valuation, as the company’s diversified portfolio has limited strategic fit and diluted earnings power.
Julie Fazio, President of UGI International, said the deal "substantially completes the portfolio optimization program, allowing us to sharpen our focus on the segments where we have the strongest competitive positions and growth opportunities." She added that the company will continue to invest in its core U.S. gas utilities and midstream assets while pursuing selective growth in high‑margin areas such as renewable natural gas and LNG.
For DCC plc, the acquisition expands its European LPG footprint and consolidates a fragmented market. The company has previously acquired UGI International’s Austrian LPG business, and the new assets will enhance DCC’s scale and pricing power across Central and Eastern Europe. The deal aligns with DCC’s strategy to achieve mid‑teen returns on capital through geographic expansion and operational synergies.
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