Last checked at 23 Sep 2011 07:00
DCC to expand its oil distribution businessin Britain, the Isle of Man and the Channel Islands
DCC plc, the sales, marketing, distribution and business support services group, has reached conditional agreement with Rontec Investments LLP ("Rontec") to acquire certain oil distribution assets currently owned by Total in Britain, the Isle of Man and the Channel Islands ("the Acquired Businesses"). Rontec reached conditional agreement in June 2011 to purchase the Acquired Businesses as part of a larger transaction with Total. DCC's acquisition is conditional on Rontec completing its transaction with Total, which is expected to take place in late 2011.
The Acquired Businesses together employ 550 people and sold 1.5 billion litres of fuel in 2010. The key components of the Acquired Businesses are:
·; The trade, fixed assets, stock and goodwill of Total Butler, a transport, commercial and home heating oil distribution business with sales volumes in 2010 of 670 million litres. Total Butler has a network of 40 depots across England and Wales and a fleet of circa 200 leased delivery vehicles.
·; Contracts to supply transport fuels to circa 300 dealer owned dealer operated retail service stations (currently branded Total). Volumes sold under these contracts in 2010 amounted to 710 million litres.
·; The entire issued share capital of Total's oil distribution and retail service station businesses on the Isle of Man and the Channel Islands. In 2010, together these businesses sold 120 million litres of fuel.
The expected total consideration payable by DCC for the Acquired Businesses together with the estimated value of stock to be acquired is €67 million (Stg£59 million), and will be satisfied in cash at completion. The goodwill at completion will be approximately €43 million (Stg£37 million).
Tommy Breen, Chief Executive of DCC plc, said today:
"This acquisition represents a further significant step forward in DCC's growth strategy in oil distribution in Britain. It will considerably extend DCC Energy's presence in England and Wales and will also enhance our ability to serve customers throughout the market."
For Reference:
Tommy Breen, Chief Executive, DCC plc
Donal Murphy, Managing Director, DCC Energy
Redmond McEvoy, Investor Relations Manager
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie