DCC HAS agreed to buy oil distribution assets owned by Total in Britain, the Isle of Man and the Channel Islands in a deal worth €67 million.
The company is to buy the assets from Rontec Investments when it completes a deal it struck in the summer with Total.
The deal includes trade, fixed assets and stock of transport, commercial and home heating oil distribution business Total Butler, the share capital of Total’s oil distribution and retail service station businesses on the Isle of Man and the Channel Islands, and contracts to supply transport fuels to about 300 dealer owned and operated retail service stations that are branded Total.
Some 550 people are employed at the business in question, which sold 1.5 billion litres of fuel last year.
“This acquisition represents a further significant step forward in DCC’s growth strategy in oil distribution in Britain. It will considerably extend DCC Energy’s presence in England and Wales and will also enhance our ability to serve customers throughout the market,” said chief executive Tommy Breen.
DCC already controls a large percentage of the British heating and oil distribution market through a number of subsidiary companies.
The company has done a number of acquisition deals in the UK market this year, including an agreement to buy British oil distribution firm Pace Fuelcare for €27.7 million, and Oakwood Fuels, which its subsidiary, DCC Environmental Britain bought for as much as €33.3 million.
More than 70 per cent of DCC’s revenues are generated in the UK, and the company has said that it has considered moving its main listing to the UK.
The company posted a 15 per cent jump in pre-tax profits to €189.6 million in its 2010 financial year.
