DCC buys UK fuel distributor

DCC has agreed to buy UK fuel distribution and fuel card business Brogans for €47.2m in cash, the company announced today.

Brogans, which is headquartered in Motherwell in Scotland, operates from 15 fuel distribution depots in Scotland and the north of England while its fuel card business also has an office in Canterbury in the south of England. Brogans has a fleet of 87 road tankers and 279 employees.

Brogans sold 447 million litres of fuel in its financial year ended 31 May 2009 with adjusted operating profit of €7.9m for the period.

“The acquisition of Brogans will further enhance DCC Energy’s position as the leading oil distributor in Britain, bringing its market share to approximately 14%, and will also significantly increase the scale of DCC’s fuel card operations in Britain," DCC CEO Tommy Breen said.

"We are confident that the integration of Brogans with DCC’s existing oil distribution and fuel card activities will deliver returns on capital broadly commensurate with previous energy acquisitions.”