Acquisition

RNS Number : 2347C

DCC PLC

10 November 2009

 

 

DCC to acquire Shell Direct Austria GmbH

DCC plc, the business support services group, announces that it has reached conditional agreement for the acquisition of Shell Direct Austria GmbH ("SDA") from Shell Austria.  SDA sells approximately 630 million litres of transport fuels and heating oils to domestic, commercial, agricultural and industrial customers throughout Austria. It is one of the leading fuel distribution businesses in Austria with a market share of approximately 11%. DCC has also agreed to enter into a long term supply arrangement with Shell in Austria and, following acquisition, SDA will operate as a Shell branded distributor. The transaction is subject to competition clearance from the European Commission and is expected to complete in January 2010.  

SDA employs 152 staff and has approximately 60,000 customers. It operates from 18 locations throughout the country and has a fleet of 55 trucks (in addition to outsourcing approximately one third of its deliveries to third party hauliers). Net tangible operating assets at completion are expected to be approximately €2.1 million. 

DCC's investment in SDA on a cash free / debt free basis, net of an adjustment for working capital at the date of completion, will be €18.3 million. The net consideration payable to Shell Austria will be satisfied in cash. As SDA was an integral part of the Shell supply chain it did not report its financial results in a manner consistent with the supply arrangement under DCC's ownership. It is expected that in the first full financial year of ownership, return on capital will be broadly commensurate with that achieved in DCC Energy's other businesses.  

Tommy Breen, Chief Executive of DCC plc, said today: 

"The acquisition of SDA is another important step in our strategy to develop DCC Energy in continental Europe. We are pleased that our excellent relationship with Shell has presented this opportunity, which follows our purchase of Shell's oil distribution business in Denmark earlier this year.  SDA's strong management team and its extensive operational infrastructure, together with DCC's experience in profitably managing and developing local oil distribution businesses, provide an excellent platform for growing this business in Austria over the coming years."  

For reference:  

Tommy Breen, Chief Executive, DCC plc  

Donal Murphy, Managing Director, DCC Energy  

Conor Murphy, Investor Relations Manager  

Telephone: + 353 1 2799400  

Email: [e-mail]  

Web: www.dcc.ie  

 

END

 

 

ACQUUGMCGUPBPUB