UGI International, LLC shares climbed Tuesday, on word that it has entered a definitive agreement to strategically exit its LPG distribution business in Austria through a sale to DCC, plc for an enterprise value of €55 million.
This morning’s news release says the transaction represents the latest milestone in UGI International's portfolio rationalization efforts, geared towards creating a more focused and high-performing business. Proceeds will strengthen the corporation’s balance sheet through debt reduction, enhancing financial flexibility for future growth investments.
"We are systematically building a more streamlined and resilient international business by concentrating on markets where we can maximize our operational expertise," said UGI President Julie Fazio.
"This business, while operationally sound, represented a smaller portion of our European business with approximately 12 million gallons sold in fiscal 2024. Our strategic exit from Austria reflects our commitment to deploy capital where we can generate more compelling returns.”
The transaction is expected to close in the first quarter of fiscal 2026, subject to customary closing conditions.
UGI International, a subsidiary of UGI Corporation, is a leading LPG distributor operating in 15 European countries. In 2024, UGI International (NYSE:UGI) sold approximately 875 million gallons of LPG throughout Europe to a customer base primarily consisting of residential, commercial, industrial, agricultural, wholesale and automobile fuel customers.
UGI shares grabbed 86 cents, or 2.6%, to $33.62.
