UGI Corp., the largest U.S. distributor of liquefied petroleum gas, will seek takeover targets in Germany after buying BP Plc’s Polish LPG business, a company official said.
“We’re looking for more acquisitions in Poland and in Europe,” Donald Groth, UGI’s director for corporate development, told a news briefing in Warsaw today. “Over time there will be opportunities for us to expand in Germany too.”
UGI’s European subsidiary Flaga GmbH yesterday completed the acquisition of BP’s business, which sold 150 million gallons of LPG last year and became one of Poland’s three largest distributors of the fuel used to power cars and heat homes. With Flaga, the Pennsylvania-based company operates in 16 European countries but not Germany, the continent’s biggest economy.
UGI expects its sales in Poland will rise to 1.2 billion zloty ($369 million) in 2014, double the 2012 level. Poland is Europe’s second-largest consumer of LPG after Italy and uses 2.2 million metric tons of the fuel a year, of which 73 percent powers cars compared with a European average of 8 percent, according to the company.