DCC PLC
14 December 2001
STOCK EXCHANGE ANNOUNCEMENT
Growth Momentum in DCC Energy
Continues with Further Expansion in Britain
14 December 2001
DCC plc, the Business Support Services group, announces a further expansion of
its energy marketing and distribution operations in Britain through the
purchase of the trade and certain assets of Altagas plc, a significant
marketer and distributor of cylinder butane and propane.
Altagas, which was established in 1994, has expanded extremely rapidly and was
put into receivership on 6 November 2001. It is headquartered in Liverpool
and has 23 depots throughout Britain. The business employs 254 people. The
assets acquired include depots, a significant cylinder population and a number
of brands, including the Altagas brand.
The cost of the assets acquired together with the estimated working capital
requirements is approximately EUR 16 million. The consideration paid
represents a significant discount to the replacement cost of the assets.
DCC currently markets and distributes LPG in Britain and Ireland under the
Flogas brand. The acquisition of Altagas increases DCC's share of the British
LPG market to approximately 10%.
Jim Flavin, Chief Executive and Deputy Chairman of DCC plc, said today:
'The acquisition of the Altagas business is another important step in the
expansion of DCC's energy distribution operations in Britain, following the
recent acquisition of BP's oil marketing and distribution business in
Scotland. Consolidation has been a feature of the British LPG market in
recent years and this acquisition places DCC firmly among the market leaders.
DCC's energy operations have a track record of strong profit growth and
excellent returns on capital employed and cash generation. With continuing
organic growth and bolt-on acquisition opportunities we are optimistic for
DCC's continued growth and development in the energy market in the coming
years.'
For reference:
Kevin Murray, Managing Director - DCC Energy
Conor Costigan, Investor Relations Manager
Tel. + 353 1 279 9400
Email: investorrelations@dcc.ie
For further information on DCC: www.dcc.ie
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