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DCC to acquire Chevron's UK Oil Distributor business
DCC plc, the business support services group, announces that it has reached agreement for DCC’s subsidiary, GB Oils, to acquire the trade, assets and goodwill of the Chevron Limited UK “Equity Distributor” business (“the Business”). The Business, trading under the Texaco brand, distributes transport fuels and heating oils to commercial, industrial, agricultural and domestic customers principally in southern England and Wales. GB Oils has also agreed to enter into a long term supply arrangement with Chevron.
The Business operates from 26 trading locations in England and Wales with a fleet of 167 road tankers and 356 employees. The Business sells approximately 1.0 billion litres of oil per annum to an extensive customer base of c. 100,000 customers and operates under a number of well recognised trading names including Bates & Hunt, Team Flitwick, OJ Williams and Owen Fuels. As the Business was an integral part of Chevron UK it did not report its financial results in a manner consistent with the operations
of the Business under new ownership. DCC anticipates that the profit contribution from the Business will be modest in DCC's financial year to 31 March 2009 but that it should improve significantly in the following year as the Business benefits from DCC's proven experience and management skills in the oil distribution market in Britain.
The consideration payable for the fixed assets and goodwill of the Business is €27.52 million (Stg£21.86 million) and will be satisfied in cash. DCC will also acquire the stock and debtors of the
Business at completion. The overall working capital investment in the Business is expected to be minimal.
It is anticipated that the transaction will be completed at the end of August 2008, after undertaking the necessary consultations with employees.
Tommy Breen, Chief Executive of DCC plc, said today
'DCC Energy is already the largest oil distributor in Britain with annualised sales of approximately 3.2 billion litres and a market share of approximately 10%. The acquisition
of the Texaco distribution business will bring significant further scale to DCC's oil distribution business in Britain and is consistent with our strategy of growing our presence in this market.'
For reference:
Tommy Breen, Chief Executive, DCC plc
Donal Murphy, Managing Director, DCC Energy
Conor Murphy, Investor Relations Manager
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DCC to acquire Chevron's UK Oil Distributor business
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07-Sep-2008 20:48:16
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