Acquisition

RNS Number : 3023U

DCC PLC

20 December 2011

 



DCC to expand its European oil distribution business with the acquisition of Swea Energi in Sweden

DCC plc, the sales, marketing, distribution and business support services group, has reached conditional agreement to acquire the entire issued share capital of Swea Energi Holding AB ("Swea") from Lennart and Viviann Hansson. Swea is the leading distributor of heating oils and transport fuels to domestic, commercial and industrial customers in Sweden. The acquisition is conditional on competition approval from the European Commission and it is anticipated that the transaction will complete in early 2012.

With a head office in Kungsbacka, near Gothenburg, Swea sells approximately 500 million litres of oil per annum to customers throughout Sweden. Swea employs a total of 54 staff across a network of seven sales offices with transport outsourced to a number of regional hauliers.

The initial consideration payable on completion for Swea will be SEK205 million (€22.7 million) on a debt free cash free basis, and will be satisfied in cash. In addition deferred consideration up to a maximum of SEK60 million (€6.6 million) will be payable based on Swea's operating profit performance for the twelve months ending 31 March 2013.  In the financial year to 31 December 2010, Swea generated an operating profit before tax of SEK49.6 million (€5.5 million).

Tommy Breen, Chief Executive of DCC plc, said today

"The acquisition of Swea is a significant expansion of DCC's oil distribution business in Scandinavia, building on our acquisition of Shell's oil distribution business in Denmark in 2009. With a strong local management team to be led by Lennart Hansson and the benefit of DCC's experience in oil distribution, we look forward to growing Swea in the Swedish market over the coming years and continuing to develop a substantial position in oil distribution in Scandinavia."

For reference:

Tommy Breen, Chief Executive, DCC plc

Donal Murphy, Managing Director, DCC Energy

Redmond McEvoy, Investor Relations Manager, DCC plc

Telephone: + 353 1 2799400

Email: [e-mail]

Web: www.dcc.ie

 

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