DCC buys British fuel firm for €28m
According to the Dublin-headquartered support services giant’s chief executive, Tommy Breen, the acquisition will boost DCC Energy’s share of the British fuel distribution business to about 15%.
It will be a purely cash transaction, but still requires clearance from Britain’s Office of Fair Trading.
“Pace has a particular strength in the distribution of transport fuels in southern England and will be complementary to DCC Energy’s existing business,” added Mr Breen.
In its last financial year, Pace — which is based in Egham in Surrey — sold 515 million litres of fuel to independent retail petrol stations and a broad range of commercial, industrial, agricultural and domestic customers.
The company, which is owned by MRH (GB) Ltd, employs about 240 people and operates from 20 locations across southern England — being linked with customers by a fleet of 86 road tankers.
DCC recently increased its full-year earnings forecast, mainly on the back of customer demand for its Energy division rising significantly through the recent harsh winter.
It expects operating profits to be ahead of last year, by 15% rather than up by a single digit percentage.
In a research note, published yesterday, Goodbody Stockbrokers said that the deal showed that DCC was putting its balance sheet to use with another bolt-on acquisition and the move could add between 2.5c and 3c to the group’s earnings per share levels in the first year of ownership.
DCC is due to publish its latest annual results in May.
