Last checked at 1 Oct 2009 15:21
1 October 2009
DCC Further Expands its Oil Distribution Business in Britain
DCC plc, the business support services group, has acquired Bayford Oil Limited ("Bayford Oil"), the oil distribution business of the Bayford Group. Operating from 14 locations, principally in the North of England, Bayford Oil is a long established oil distribution business with a fleet of 60 road tankers and 155 employees.
Bayford Oil sold 468 million litres of oil in the year ended 30 June 2009. This comprised 313 million litres of transport and heating fuels sold to a broad range of domestic, commercial, agricultural and transport customers and 155 million litres of petrol and diesel sold to independent dealer owned petrol stations which trade under the 'Gulf' brand.
The adjusted operating profit of Bayford Oil for the year ended 30 June 2009 was €3.9 million (Stg£3.5 million). The cash consideration for the business, net of average cash acquired, was €24.7 million (Stg£22.5 million).
Bayford Oil is a particularly good fit with DCC's existing oil distribution business in the North of England and DCC is confident that the integration of Bayford Oil will yield significant synergies.
Tommy Breen, Chief Executive of DCC plc, said today:
"The acquisition of Bayford Oil (which adds approximately 12% to DCC's annualised oil volumes in Britain) represents a further step in DCC's continuing strategy of consolidating the fragmented oil distribution business in Britain. It will strengthen DCC's position in the North of England and significantly increase our business in supplying the independent retail petrol station market. DCC has an excellent record of achieving significant operating synergies from its recent acquisitions in the UK oil distribution business and we believe that the acquisition of Bayford Oil will prove no exception in this regard."
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