Last checked at 23 Mar 2016 11:14
STOCK EXCHANGE ANNOUNCEMENT
23 March 2016
DCC Energy agrees to acquire Danish oil distribution and retail assets from Alimentation Couche-Tard
DCC plc, the international sales, marketing, distribution and business support services group, has reached agreement with Alimentation Couche-Tard Inc. ("Couche-Tard") to acquire a commercial, aviation and retail fuels business in Denmark, substantially formerly owned by Shell. The business comprises the remedy package resulting from the purchase by Couche-Tard of Shell's downstream marketing operations in Denmark, agreed in March 2015. The completion of the acquisition of the remedy package by DCC is conditional, inter alia, on EC competition clearance. The transaction is expected to complete in the second half of calendar 2016, after the relevant clearances have been received.
The acquisition will comprise Shell's commercial and aviation distribution business in Denmark and a 139 site retail petrol station network (comprising 95 manned and 44 unmanned sites) and contracts to supply 66 dealers. DCC will also enter into a long term brand partnership with Shell to operate the network under the Shell brand. The transaction will require a total investment by DCC of approximately DKK300 million (£30 million). The business will be merged with DCC's existing oil distribution business in Denmark and will leverage DCC's newly developed retail operating platform.
The acquired business will have total incremental volumes of approximately 0.9 billion litres and is expected to generate an initial return on invested capital commensurate with DCC's Energy's existing returns.
Tommy Breen, Chief Executive of DCC plc, said today:
"This acquisition will significantly strengthen our business in Denmark, as well as further develop our presence in the retail market for transport fuels, following our previous acquisitions in the European retail petrol station market in Sweden and France."
For Reference:
Donal Murphy, Managing Director, DCC Energy
Fergal O'Dwyer, Chief Financial Officer, DCC plc
Telephone: +353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie