Carlton purchase makes DCC top dog

DCC has increased its oil distribution interests in the British market through the €13.3 million (£9.2m) acquisition of Carlton Fuels.

The move consolidates the group’s DCC Energy division as the main oil distributor in the British market.

A deferred cash payment of up to €3.2million (£2.2m) may be paid over the next five years.

It would be based on Carlton’s performance and the achievement of certain undisclosed profit targets.

Commenting on the purchase, DCC’s chief executive and deputy chairman Jim Flavin said: “Carlton is a well managed business which has grown strongly in recent years and the business will integrate well with DCC’s existing oil distribution operations in Britain.

“DCC Energy is now the largest oil distributor in Britain and the Carlton acquisition will further strengthen the excellent relationships the company has with all of the oil majors,” he added.

Carlton, which is based in the north of England and employs 118 people, sells around 500 million litres of fuel — mainly diesel and gas oil — every year to a range of commercial, transport and local government customers.

It operates from six depots around the Liverpool, Sheffield and Immingham areas in the north of the country.

These will now be integrated with DCC Energy’s existing oil distribution operations in England.

Carlton is expected to report an adjusted operating profit for its financial year to the end of June of approximately €4.6million (£3.2million) on sales of around €404million (£280million).

The company’s net debt averaged €4.7million (£3.3million) over the past year.