DCC acquires CPL Petroleum
DCC PLC
20 July 2007
DCC to acquire another leading oil distribution business in Britain
DCC plc, the procurement, sales, marketing, distribution and business support
services group listed on both the Irish and London stock exchanges, announces
that it has reached conditional agreement to acquire CPL Petroleum Limited
('CPL Petroleum'), a leading oil distribution business in Britain, from CPL
Industries Holdings Limited, the UK's market leader in solid fuel distribution.
The acquisition is subject to inter alia clearance from the UK Office of Fair
Trading.
CPL Petroleum is a leading supplier of transport fuels and heating oils to
commercial, industrial, domestic and agricultural customers throughout Britain.
CPL Petroleum operates from 39 depots with a fleet of 200 road tankers and 481
employees. In the twelve months to 31 March 2007 CPL Petroleum sold 831 million
litres of oil. DCC intends to integrate CPL Petroleum's operations with DCC
Energy's existing oil distribution business in Britain, which in the year to 31
March 2007 distributed 1,541 million litres of oil. The acquisition will further
enhance DCC Energy's position as the leading oil distributor in Britain.
The consideration payable for CPL Petroleum, which will be acquired on a cash
free / debt free basis, is €74.2 million (Stg£50 million) adjusted to reflect
the difference between the actual working capital of CPL Petroleum at completion
and its average working capital over the twelve months to completion. The
consideration will be satisfied in cash. It is anticipated that the transaction
will be completed by the end of September 2007.
CPL Petroleum's operating profit before group charges, goodwill amortisation and
exceptional items for its financial year ended 31 March 2007 was €9.4 million
(Stg£6.4 million) on sales of €620 million (Stg£418 million). CPL Petroleum's
gross tangible operating assets at 31 March 2007 were €69.4 million (Stg£46.8
million) and its net tangible operating assets were €9.0 million (Stg£6.1
million).
Jim Flavin, Executive Chairman of DCC plc, said today
'The acquisition of CPL Petroleum is a significant step in DCC's stated strategy
of doubling the size of its oil business in Britain and builds on the
acquisitions of BP's oil business in Scotland in 2001, the business of Shell
Direct in England and Wales in 2004, Carlton Fuels in 2006 and a number of other
smaller acquisitions. CPL Petroleum, while operating throughout Britain, has a
relatively stronger business in Southern England and will complement DCC's
existing business, which is relatively stronger in Northern England and
Scotland.'
For reference:
Jim Flavin, Executive Chairman, DCC plc
Tommy Breen, Group Managing Director, DCC plc
Donal Murphy, Managing Director, DCC Energy
Conor Murphy, Investor Relations Manager
Telephone: + 353 1 2799400
Email: investorrelations@dcc.ie
Web: www.dcc.ie
About DCC plc:
DCC plc is a procurement, sales, marketing, distribution and business support
services group headquartered in Dublin with international operations across four
continents. DCC has five divisions - DCC Energy, DCC SerCom, DCC Healthcare, DCC
Food & Beverage and DCC Environmental. In its latest financial year to 31 March
2007, DCC had sales of €4.046 billion, operating profits of €143.0 million and
currently employs over 6,000 people in 16 countries. DCC's shares are listed on
both the Irish and London stock exchanges under Business Support Services.
DCC Energy is the leading oil and liquefied petroleum gas (LPG) sales, marketing
and distribution business in Britain and Ireland. In the year ended 31 March
2007, DCC sold in excess of 3.2 billion litres of product to approximately
375,000 domestic, commercial, industrial and agricultural customers from its
extensive network of 149 depots throughout Britain and Ireland, generating
revenues of €2.248 billion and operating profits of €60.5 million. DCC Energy
currently employs approximately 2,080 people.
This information is provided by RNS
The company news service from the London Stock Exchange