DCC Energy agrees to sell Nexora for $725 million
Key Facts
DCC Energy announced in October an agreement to sell Nexora to One Equity Partners for an enterprise value of $725 million, Reuters reported, citing the company. The sale of the technology business is linked to additional contingent consideration for shareholders under the group's takeover deal. The company estimated expected net sale proceeds at $701 million. It put the expected additional consideration at 42 pence per share, according to Reuters' coverage of the announcement. The sale agreement follows the group's takeover progressing from a proposal rejected by the board in April to a deal subsequently recommended by the board and approved by shareholders in September.
The takeover document sets the base consideration payable to shareholders at 6,525 pence in cash per share. It also provides for an additional payment linked to the sale of the technology business, capped at 125 pence per share and subject to specified conditions. The valuation of the entire issued and to-be-issued share capital is about £5.75 billion, including both the base consideration and the final dividend. At the takeover scheme voting meeting held on 18 September 2026, shares representing 78.09% of votes backed the scheme, according to the company's announcement of the meeting results. Shares representing 21.91% of votes opposed it, allowing the scheme to pass despite opposition from some shareholders.
The board had unanimously rejected the initial proposal on 29 April 2026, according to the Irish Times, saying it "fundamentally undervalued" the company and its prospects. That proposal was worth £58 per share, implying an equity valuation of £4.95 billion. In its coverage on 30 April, Reuters described the company's shares as the biggest decliner in the FTSE 100 following the rejection of the offer. Negotiations continued after the rejection, with the consortium submitting 7 proposals over 3 months, according to the Irish Times. An agreement on the terms of an offer unanimously recommended by the board was announced on 27 July 2026, according to the deal document.
The negotiations took place during a period in which the group's continuing operations recorded growth in adjusted operating profit, according to its annual report summary. That profit reached £634.0 million in 2026, compared with £612.1 million in 2025, an increase of 3.6%. In its annual general meeting update, the company said group operating profit from continuing operations for the first quarter ended 30 June 2026 was "in line with our expectations and ahead of the prior year". The quarterly update thus showed further year-on-year improvement in profit from continuing operations following the increase reported in the annual results. Also in July, the company's name change from DCC to DCC Energy took effect on 17 July 2026 following formal registration.
Over the longer term, the company's strategy targets an increase in operating profit from its energy business to £830 million by 2030. That represents an ambition to double the business's profit compared with the 2022 base year, according to its annual results announcement. The company described the target as a strategic ambition rather than a guaranteed profit forecast. A Reuters Breakingviews analysis said investors had not fully priced in the profit targets endorsed by the board. The analysis added that achieving those targets independently, without the deal, would have required the company to spend years executing difficult acquisitions.
For its next financial reporting date, the company's calendar lists 10 November 2026 for the release of its interim results. Those results cover the 6 months ended 30 September 2026. As for completion of the takeover, the company expected it in the first quarter of 2027 when it announced the shareholder voting results. That timing remains subject to satisfaction of the deal's outstanding conditions, according to the announcement. The takeover scheme also requires sanction by the Irish High Court to become effective.