DCC buys distributor for €51m

The DCC group has bought BP’s liquefied petroleum gas distribution business in Britain for €51.3m.

Chief executive Tommy Breen said the acquisition will complement its existing business.

“DCC is pleased to have reached agreement with BP to acquire its liquefied petroleum gas distribution business in Britain,” he said.

“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 [liquefied petroleum gas] sales, marketing, and distribution business in Britain.”

The new business it has acquired supplies a range of industrial, commercial, and domestic customers with an annual volume of approximately 87,000 tonnes of bulk and cylinder liquefied petroleum gas.

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 liquefied petroleum gas business in Britain, which has annual sales volumes of about 190,000 tonnes.

DCC plans to integrate the BP business with its existing Flogas operation. It is not clear yet whether the integration of the two businesses will result in job losses. DCC is unwilling to divulge its plans for the businesses until it receives regulatory approval for the takeover. Regulatory approval takes six to eight weeks.

The deal is expected to be completed by the end of September.

The DCC group is diversified across five divisions: Energy, SerCom, healthcare, environmental, and food and beverage.