UGI International Sells LPG Businesses in Eastern Europe for €48M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Business Sale: UGI International has agreed to sell its liquefied petroleum gas distribution businesses in the Czech Republic, Hungary, Poland, and Slovakia to DCC plc for an enterprise value of approximately €48 million, marking a strategic shift for the company.
- Portfolio Optimization: This divestiture substantially completes UGI International's previously announced portfolio optimization program, allowing the company to sharpen its focus on segments where it has the strongest competitive positions and growth opportunities, enhancing overall operational efficiency.
- Market Position: UGI International is a leading LPG distributor operating in 14 European countries, with plans to sell 820 million gallons of LPG to customers throughout Europe by 2025, demonstrating its significant market influence.
- Strategic Focus: UGI International President Julie Fazio stated that this transaction will enable the company to better concentrate resources, further solidifying its competitive advantage in the LPG market and driving future growth.
Analyst Views on UGI
Wall Street analysts forecast UGI stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for UGI is 45.00 USD with a low forecast of 45.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
1 Analyst Rating
1 Buy
0 Hold
0 Sell
Moderate Buy
Current: 37.220
Low
45.00
Averages
45.00
High
45.00
Current: 37.220
Low
45.00
Averages
45.00
High
45.00
About UGI
UGI Corporation is a holding company that distributes, stores, transports, and markets energy products and related services. In the United States, it owns and operates natural gas and electric distribution utilities, energy marketing, midstream infrastructure, storage, natural gas gathering and processing, natural gas production and energy services businesses, and a retail propane marketing and distribution business. In Europe, it markets and distributes propane and other LPG, and markets other energy products and services. Its Utilities segment consists of the regulated natural gas and electric distribution businesses. Its Midstream & Marketing segment consists of energy-related businesses. Its UGI International segment consists of LPG distribution businesses in Austria, Belgium, the Czech Republic, Denmark, Finland, France, Hungary, Luxembourg, the Netherlands, Norway, Poland, and others. The AmeriGas Propane segment consists of the propane distribution business of AmeriGas Partners.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
