DCC PLC
3 September 2001
DCC Acquires Leading Oil Business in Scotland
DCC plc ('DCC') - the value added marketing and distribution group -
announces the acquisition from BP of the trade, assets and goodwill of BP's
oil marketing and distribution business (excluding retail service stations) in
Scotland and part of Northern England. This is a key development for DCC's
energy division as it provides an important platform for the development of a
significant oil marketing and distribution business in Britain over time. DCC
Energy is already a leading player in the oil and liquefied petroleum gas
('LPG') markets in Ireland and in LPG in Britain.
DCC Energy has an excellent relationship with BP which is an important
supplier of oil products to its Northern Ireland business. Building on this,
BP and DCC Energy have entered into a new long term agreement for oil products
for the Scottish market to be supplied from BP's Grangemouth refinery.
The acquisition involves the purchase of the trade, assets and goodwill of
BP's oil marketing and distribution business (excluding retail service
stations) in Scotland and part of Northern England. The business, which will
trade under the name 'Scottish Fuels', has a turnover of approximately EUR240
million and employs 200 people. The cost of the assets acquired together with
the estimated working capital requirements is approximately EUR15 million.
DCC Energy aims to bring its cost effective and specialist skills in value
added marketing and distribution to the acquired business which should result
in operating profits of approximately EUR2.5 million in DCC's first year of
ownership.
The assets acquired from BP include nine oil storage depots - eight are
located throughout Scotland and one in Northumberland, Northern England - and
a fleet of ninety road tankers. The head office and the main telesales centre
are based in Falkirk, between Edinburgh and Glasgow, and there are two other
telesales centres in Inverness and Dumfries.
Jim Flavin, Founder and Chief Executive of DCC, said today:
'The acquisition of the leading oil marketing and distribution company in
Scotland is an important building block in our plans for the development of a
significant oil marketing and distribution business in Britain over time. The
British oil distribution market is fragmented and we plan further acquisitions
which will complement this acquisition geographically.
Recent acquisitions (Burmah's fuels business in the Republic of Ireland and
Cawoods and Fuel Services in Northern Ireland) combined with long established
subsidiaries Emo Oil and Flogas and strong organic growth have resulted in DCC
Energy becoming a substantial (annual turnover of EUR800 million plus), cash
generative, recurring revenue, growth business within the DCC group. We are
optimistic for the continued growth and development of DCC Energy in the
coming years'.
For reference:
Kevin Murray, Managing Director - DCC Energy
Conor Costigan, Investor Relations Manager
Tel. + 353 1 279 9400
E-mail:investorrelations@dcc.ie
For further information on DCC: www.dcc.ie
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