Last checked at 14 Dec 2009 07:00
14 December 2009
DCC acquires a leading oil distribution and fuel card business in Britain
DCC plc, the business support services group, has agreed to acquire the entire issued share capital of Brogan Holdings Ltd ("Brogans"), a leading fuel distribution and fuel card business in Britain. Brogans, which is headquartered in Motherwell in Scotland, operates from 15 fuel distribution depots in Scotland and the north of England while its fuel card business also has an office in Canterbury in the south of England. Brogans has a fleet of 87 road tankers and 279 employees.
Brogans sold 447 million litres of fuel in its financial year ended 31 May 2009. This comprised 343 million litres of heating and transport fuels sold to a broad range of approximately 40,000 domestic, commercial, industrial and agricultural customers and 104 million litres of motor fuels sold through fuel cards to approximately 10,000 customers. Brogans markets fuel cards under a number of leading brands including BP, Diesel Direct, Shell and Texaco.
Brogans' adjusted operating profit for its financial year ended 31 May 2009 was €7.9 million (Stg£7.1 million) on sales of €329 million (Stg£296 million). Its gross tangible operating assets at 31 May 2009 were €35.3 million (Stg£31.8 million) and its net tangible operating assets were €5.3 million (Stg£4.8 million).
The consideration payable for Brogans, net of cash acquired and based on an average working capital position over the twelve months to 30 November 2009, is €47.2 million (Stg£42.5 million). The consideration is payable in cash.
Tommy Breen, Chief Executive of DCC plc, said today:
"The acquisition of Brogans will further enhance DCC Energy's position as the leading oil distributor in Britain, bringing its market share to approximately 14%, and will also significantly increase the scale of DCC's fuel card operations in Britain. We are confident that the integration of Brogans with DCC's existing oil distribution and fuel card activities will deliver returns on capital broadly commensurate with previous energy acquisitions."
For Reference:
Tommy Breen, Chief Executive, DCC plc
Donal Murphy, Managing Director, DCC Energy
Conor Murphy, Investor Relations Manager
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie