Last checked at 8 Aug 2012 09:00
DCC to acquire BP's LPG business in Britain
DCC plc, the sales, marketing, distribution and business support services group, has reached agreement with BP plc ("BP") to acquire BP's liquefied petroleum gas (LPG) distribution business in Britain ("the Business"). Completion of the acquisition is expected to take place at the end of September 2012.
The Business supplies a wide range of industrial, commercial and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder LPG. It has 116 staff and operates from a network of 13 locations throughout Britain with a fleet of 62 delivery vehicles (haulage services are principally outsourced). The footprint of the Business is highly complementary to Flogas, DCC's existing LPG business in Britain (which has annual sales volumes of approximately 190,000 tonnes).
The total consideration payable by DCC for the Business is €51.3 million (Stg£40.5 million) on a cash free/debt free basis to be satisfied in cash at completion. The net tangible operating assets of the Business at 31 December 2011 were approximately €38 million (Stg£30 million).
Tommy Breen, Chief Executive of DCC plc, said today:
"DCC is pleased to have reached agreement with BP to acquire its LPG distribution business in Britain. We have a successful track record in acquiring energy distribution businesses from the oil majors as they exit downstream activities and this transaction will enhance DCC's position as the leading oil and LPG sales, marketing and distribution business in Britain."
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